RERC Clears 2,450 MW Solar And 6,400 MWh BESS Project At Rajasthan’s Pugal Solar Park

The Rajasthan Electricity Regulatory Commission (RERC) has allowed Rajasthan Solarpark Development Company Limited (RSDCL) to move ahead with a major renewable energy project at the Pugal Solar Park in Bikaner. The project includes the development of 2,450 MW of solar power along with a 1,600 MW/6,400 MWh Battery Energy Storage System (BESS). The project is designed to improve the reliability of renewable energy by storing solar power and supplying it during evening peak demand hours, when electricity consumption is high.

RSDCL had approached the Commission seeking approval for several deviations from the Ministry of Power’s standard bidding guidelines. According to the order, these changes were proposed to better suit the technical and operational requirements of the project in Rajasthan. During the hearing, however, RSDCL withdrew three of its proposed deviations related to payment security fund charges, grid unavailability limits, and reduced-offtake compensation. The Commission welcomed this decision, stating that it helped maintain consistency with the existing national bidding framework.

After examining the remaining proposals, RERC approved seven deviations. One of the major changes relates to penalties for failing to supply power during evening peak hours. The Commission approved an increase in the penalty from 1.5 times to two times the discovered tariff. This decision was taken because Rajasthan often faces high costs while purchasing electricity from the short-term market during peak demand, with average prices reaching around Rs. 6.45 per unit. The Commission also approved a provision under which developers who fail to meet their peak power commitments will receive only 50 percent of the applicable tariff for the corresponding solar energy supplied during off-peak hours.

The Commission also approved a revised performance monitoring system for the project. Instead of measuring annual Capacity Utilization Factor (CUF), developers will now be assessed based on their monthly availability of power during peak demand periods. If a developer fails to maintain the required monthly performance for six continuous months, they will have to demonstrate compliance again within a specified period. Continued failure to meet the required standards could result in termination of the contract.

Another approved provision allows developers to begin supplying electricity from partially commissioned projects, but only if the operational solar capacity is supported by a matching proportion of battery storage. This condition has been included to ensure that the project delivers reliable peak-hour electricity from the beginning.

The order also states that after the completion of the 25-year Power Purchase Agreement, developers must remove their infrastructure and vacate the sub-leased land unless both parties agree to extend the arrangement with the approval of RERC.

The Commission further directed RSDCL and Rajasthan Urja Vikas and IT Services Limited (RUVITL) to examine whether the proposed minimum bid sizes of 250 MW and 225 MW could reduce competition by limiting the number of eligible bidders. RERC also confirmed that the large-scale battery storage planned under the project is in line with Rajasthan’s long-term Resource Adequacy Plan and is expected to reduce renewable energy curtailment. The Commission added that the tariffs discovered through the competitive bidding process will require its final approval before the project can proceed to implementation.