Rajasthan Sets Levelised Tariff for Solar Projects Under KUSUM Scheme

The Rajasthan Electricity Regulatory Commission has set the pre-fixed levelised tariff for solar projects in different components under the PM KUSUM scheme.

The Rajasthan Electricity Regulatory Commission (RERC) in its latest tariff order has announced that it has set the pre-fixed levelised tariff for solar projects in different components under the PM KUSUM scheme.

The Ministry of New and Renewable Energy (MNRE) had launched the guidelines for implementation of Pradhan Mantri Kishan Urja Suraksha evam Uthan Mahabhiyan Scheme (PM KUSUM) last year and covers the following components:

Component -A: Setting up of 10,000 MW of Decentralized Ground Mounted Grid Connected Solar Power plants of individual plant size up to 2 MW;

Component-B: Installation of 17.50 Lakh Standalone Solar Powered Agriculture Pumps of individual capacity up to 7.5 HP; and

Component-C: Solarisation of 10 Lakh Grid-Connected Agriculture Pumps of individual pump capacity up to 7.5 HP.

As per the ministry guidelines, the Component-A and Component-C will be implemented initially on pilot mode for 1000 MW capacity and one lakh grid-connected agriculture pumps respectively and Component-B will be implemented in a full-fledged manner with total Central Government support of  Rs 19,036.5 crore. After the successful implementation of the pilot project under Components-A and Component-C, the same shall be scaled up with necessary modifications based on the learning from the pilot phase with total Central Government support of Rs 15,385.5 Crores. All three components of the scheme aim to add a Solar capacity of 25,750 MW by 2022 with the total Central Financial Assistance (CFA) of Rs 34,422 crore.

In its order, the commission has fixed the levelised tariff under Component-A at Rs 3.14/unit. This will act as ceiling tariff for the competitive bidding for solar projects. The RUVNL/ Discoms may initiate a competitive bidding process for Component-A. The duration of PPA shall be 25 years for all projects covered under this scheme.

And the rate for purchase of excess power by Discoms from grid-connected solarised Agriculture pumps (Component-C in PM KUSUM scheme) shall be Rs 3.44 per unit. This tariff will be applicable for the entire useful life cycle of the grid-tied solar pumps set up under the Scheme.

The above tariff and other conditions stipulated under this order shall remain applicable for the capacity initially allocated to the State by MNRE under the Component-A and number of consumers under the Component-C of the Scheme. If need be, based on their learning and analysis, Discoms may file a suitable petition for redetermination of predetermined levelised cost/tariff and increase in the limits in terms of capacity or number of consumers, as the case may be, under the Component-A & C of the scheme.

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