Rajasthan Notifies Renewable Energy Policy: Solar Keeps Wind In Shadow

Rajasthan Renewable Energy Policy: Solar Given Preference Over Wind

This week has turned out to be an eventful when it comes to the renewable energy policy landscape with the two leading states in capacity additions- Gujarat and Rajasthan unveiling their Renewable Energy Policies.

Ambitions 

The policy newly unveiled policy strives for 90 GW of solar capacity in the state by decade-end. It also eyes 15 GW of solar-wind hybrid projects. What stands out about these figures is that solar has been given a much larger chunk over wind, which is said to have a higher potential in Rajasthan when pitted against solar.

Significance has also been given to projects on Hydro, Pump Storage Plant (PSP), Battery
Energy Storage System with a goal chalked out for 10,000 MW for these.

In a policy move that is notable with regards to decentralised solar and sets sights on significantly minimizing energy losses while optimising energy, it looks at placing solar farms ranging from capacities of 0.5 MW to 5 MW close to the current substations. This should come as a benefit to the agriculture sector wanting to adopt solar.

The policy also aspires to give an impetus to rooftop solar, with a vision to remodel district headquarters and other key areas into “Green Energy Cities” by way of solar rooftop systems.

Relaxations

In another applaudable move that  will help accelerate the EV sector and renewable energy capacity for charging stations, the advantages of open access are applicable to charging stations as well now. This should get the EV sector in Rajasthan moving and accelerate the set up of charging stations in the state.

For hybrid projects, relaxations from electricity duty continue to be the same. The exemptions on  green captive power (introduced in solar policy in 2019) along with wind will continue.

Vinay Pabba, COO, Vibrant Energy states, “There are definitional changes in what constitutes a solar wind hybrid. Compared to the national standard of 30% capacity threshold (solar/wind capacity being at 30% of the other component) . It is brought down to 25% . Similarly, thresholds are defined for hybridizing solar/wind with storage.”

Additional Levies

In a move that might not prove to be lucrative for the industrial and big scale renewable energy projects of the state, a facilitation charge of 50,000 per hectare per year will be applicable to sale of power to an entity outside of Rajasthan discoms. On the other hand, developers have the option to provide 7% of generated power for free of cost  to Discoms in exchange for this charge.

Establishment of renewable energy parks

Rajasthan has come up as a primary site for the the set up of renewable energy parks. In what will further accelerate the establishment of RE parks, the policy looks at developing them by way of joint ventures with private developers, which should ring in heavy investment into the state. Additionally, Rajasthan government will make an investment to up to 50% equity in these projects while also meeting the land cost- an encouraging move that is likely to catch the fancy of utility and C&I segment.

The 2023 Rajasthan policy has minor changes or revisions when compared against the one introduced in 2019. About this, Pabba opines, “RJ’s RE policy is a sign that the policies are maturing with very minor changes in each and every new version. Policy stability is a good thing. Old wine in an old bottle tastes just as well as in a new bottle.”

As per the figures of monthly renewable energy capacity addition from the end of August 2022 to August 2023, Rajasthan added the highest capacity of 3,917 Megawatt (MW) of renewable capacity. Rajasthan, by the end of August 2022, had a total installed renewable power capacity at 19512 MW, which notched up to 23429 MW by the end of August 2023. It was the highest addition by any Indian state during the period. It was followed by Gujarat, which added 3,751 MW of green energy during the same period. Gujarat last year had a total of 17910 MW of renewable capacity by August, which increased up to 21661 MW last month.