RERC green lights procurement of 1,000 MW solar projects in Rajasthan

17 Jul 2024 CW Team

The Rajasthan Electricity Regulatory Commission (RERC) has sanctioned the procurement of 1,000 MW of solar power by Rajasthan Urja Vikas & IT Service (RUVITL) from seven developers. This decision, aimed at meeting the state?s renewable energy purchase obligations (RPO) and addressing daytime power demand, upholds the competitive bidding process and approves tariffs ranging from Rs 2.61 /kWh to Rs 2.62 /kWh. RUVITL, previously known as Rajasthan Urja Vikas Nigam, is tasked with procuring and distributing power in Rajasthan. To comply with RERC?s renewable energy purchase obligations, RUVITL initiated a bid process to procure 2,500 MW of solar power, receiving government approval in October 2022. In January 2023, RUVITL launched a tender to select developers for 1,000 MW of solar power projects connected to the state transmission utility out of the total 2,500 MW. During the e-reverse auction in May 2023, the lowest tariff discovered was Rs 2.61 /kWh. The Commission observed that the process adhered to the guidelines issued by the Ministry of Power (MOP) and the Ministry of New and Renewable Energy (MNRE). Nine bidders participated, and seven were selected based on their tariffs. RUVITL executed power purchase agreements with the chosen developers between February and March 2024 for a duration of 25 years. The Commission emphasised that procuring 1,000 MW of solar power would significantly enhance the state?s compliance with its renewable energy obligations. This approval is expected to raise the achievement of the ?Other RPO? category from 26.35% to 27.77%. Recently, the Commission also approved the purchase of 3 GW of power from 1,111 solar projects under the Pradhan Mantri Kisan Urja Suraksha evam Utthan Mahabiyan program for a period of 25 years. (Source:Mercom India)

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