Rajasthan Issues New Policy To Offer Incentives For RE Projects

Rajasthan Offers Fresh Incentives For Renewable Projects

To use the untapped renewable energy potential in Rajasthan, the state government released an Integrated Clean Energy Policy. It targets the establishment of 125 GW of renewable power projects by 2029-30. To fulfill its mission, the plans to add 90 GW of solar, 25 GW MW of Wind & Hybrid, and 10 GW of Hydro, Pump Storage Plant (PSP), and Battery Energy Storage System (BESS) projects.

This policy framework can allow the state to use the untapped renewable energy potential provided by the naturally available intense solar radiation, numerous sunny days, and vast barren lands. Rajasthan’s latest policy framework promotes the hybridization of solar and wind technologies to optimize resource utilization and enhance grid stability.

Exemptions

The policy also offers certain Exempon & Reimbursements under the RIPS scheme This includes exemption from payment of 100% electricity duty for 7 years. It offered an exemption from payment of 75% stamp duty and reimbursement of 25% stamp duty. The policy also gives exemption from payment of 75% conversion charges and reimbursement of 25% conversion charges. Additionally, it granted reimbursement of 100% mandi fee/market fee for 7 years.

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Some of the key features of the policy are: 

1. The government policy supports the construction of grid-connected rooftop PV Solar Power Plants under a net metering arrangement. The policy facilitates the DISCOMs to add solar rooftop capacity of up to 80% of the capacity of the distribution transformer in the area.
2. The state also promotes the setting up of decentralized solar power projects with a minimum capacity of 0.5 MW and a maximum capacity of 5 MW. These projects can be placed in the vicinity of 33 kV grid sub-stations to promote the sale of power to DISCOMs. These substations will be selected by RUVNL/Discoms. The tariff for these projects will be determined based on a tariff-based competitive bidding process or as per the State Government/ Government guidelines.
3. In case, the project developer hasn’t applied for in-principle clearance, the registration of such projects can be revalidated by paying a fee of ₹2,000 per MW, up to a maximum of ₹10 lakh per project (plus applicable GST).
4. If the revalidation fee is not paid, the project registration will be considered canceled. Once revalidated, these projects must apply for in-principle clearance within one year from the date of revalidation. Failure to do so will result in the cancellation of the registration.

BESS And PSP 

The National Electricity Plan (NEP) 2023 of the Central Electricity Authority (CEA) projects a significant increase in energy storage capacity requirements. By the year 2026-27, the requirement is projected to be 16.13 GW (82.37 GWh), with 7.45 GW (47.65 GWh) from Pumped Storage Plants (PSP) and 8.68 GW (34.72 GWh) from Battery Energy Storage Systems (BESS). This requirement is expected to further rise to 60.63 GW (336.4 GWh) by the year 2029-30, comprising 18.98 GW (128.15 GWh) from PSP and 41.65 GW (208.25 GWh) from BESS.