RERC Proposes Key Amendments To Renewable Tariff Regulations, Extends Control Period To 2028

The Rajasthan Electricity Regulatory Commission has issued a public notice inviting suggestions and comments on its draft “RERC (Terms and Conditions for Tariff determination from Renewable Energy Sources) (Third Amendment) Regulations, 2026.” The Commission has decided to continue with the existing regulatory structure instead of introducing an entirely new framework, aiming to maintain consistency in the renewable energy sector. Stakeholders and interested parties have been asked to submit their feedback in six copies to the Commission’s Receiving Officer by March 27, 2026.

One of the key proposals in the draft amendment is the extension of the “Control Period.” This period, which defines the applicability of tariff regulations, was initially set to end in March 2024 and later extended to 2026. The Commission now proposes to further extend it until March 31, 2028. This move is expected to provide long-term stability for developers and investors as renewable energy technologies continue to evolve and mature.

In another important step, the Commission plans to align its rules with national guidelines issued by the Ministry of Power. It has proposed adopting the Ministry’s 2022 rules on late payment surcharge. This will create a uniform system across the country for charging penalties on delayed payments, offering greater clarity and consistency for power generators and distribution companies.

The draft amendment also introduces significant revisions for biomass power plants. Based on a study conducted by ICF Consulting India, along with inputs from the Rajasthan Biomass Power Developers Association, the Commission has proposed reducing the normative Gross Calorific Value (GCV) of biomass fuel from 3400 kcal/kg to 3100 kcal/kg. This change reflects a more realistic assessment of fuel quality, as the earlier benchmark was considered too high. Additionally, to address concerns related to excess generation, the Commission has proposed that plant load factor and capacity utilization be calculated annually using 8766 hours, which includes leap year adjustments.

The amendment also takes into account the rapid growth of Energy Storage Systems (ESS). The Commission has proposed a flexible approach by removing the requirement for a fixed minimum rated capacity. Instead, the capacity will now be determined based on specific project needs and agreements between developers and procuring entities. For solid-state battery systems, a minimum efficiency level of 85% has been proposed to ensure performance standards.

Further, the Commission has proposed changes to streamline Green Energy Open Access regulations. It aims to reduce regulatory overlap by ensuring that issues such as banking, transmission charges, and wheeling surcharges are governed mainly under the RERC (Terms and Conditions for Green Energy Open Access) Regulations, 2025. This step is expected to bring more clarity and reduce inconsistencies in the intra-state transmission of renewable energy.

Overall, the proposed amendments reflect the Commission’s effort to create a stable, practical, and forward-looking regulatory environment for renewable energy development in Rajasthan.