Rajasthan’s New ‘RIPS’ Scheme Aims To Expedite RE Investments

Rajasthan's New 'RIPS' Scheme Aims To Expedite RE Investments

In a pursuit to expand its renewable energy capacity, the Rajasthan government, released its Rajasthan Investment Promotion Scheme (RIPS). It intends to capitalize on an average of 300 to 325 sunny days each year with 24.22 GW solar energy and 5.19 GW wind energy. This scheme envisions to build on the state’s strengths in renewable energy aims to extend incentives to existing enterprises investing in alignment with the state’s focus areas of ‘Green Growth’ and ‘Export Promotion.’

This policy extends benefits to enterprises investing in and establishing new renewable energy generation units. The policy offers category-specific incentives to Solar Power Plants, Wind Power Plants, Hybrid (Solar & Wind) Power Plants, Pumped Hydro Storage (PSP), Battery Energy Storage Systems (BESS), along with Biomass and Waste-to-Energy Projects.

The state government extends policy support through subsidies like Cross Subsidy Surcharge (CSS) and Additional Surcharges (AS). In its RIPS 2024 policy, the Rajasthan government offers a 100% subsidy on CSS and AS, applicable for RE generated and consumed within the state for the purpose of Green Hydrogen production (as per the applicable provisions of the Integrated Clean Energy Policy of the Government of Rajasthan) for a period of 7 years.

Transmission & Wheeling Charges:

The government gave exemptions on transmission and wheeling charges on the supply of power from BESS during peak hours or non-solar hours for a capacity of 2,000 MW or the capacity installed by 2030, whichever is earlier. The following exemptions apply for-

• RE integrated storage projects with a capacity of 5% of RE capacity will be eligible for a 75% exemption on transmission and wheeling charges for a period of 7 years.
• For BESS beyond 5% of RE capacity, an additional exemption of 1% on transmission and wheeling charges will be granted for each 1% increase in storage system capacity, up to a 30% capacity limit. BESS beyond 30% of RE capacity will be exempt from 100% of transmission and wheeling charges.
• Standalone battery storage systems (BSES) will be exempt from 100% of transmission and wheeling charges on the supply of power from BESS during peak hours or non-solar hours for a period of 7 years.

BESS connected to 11 kV or 33 kV grid substations will be exempted from 100% of transmission and wheeling charges for a period of 7 years. If an RE plant supplies energy to a Green Hydrogen plant within the state, the amount of energy supplied to the Green Hydrogen plant will be 50% exempt from transmission and wheeling charges for a period of 7 years (applicable only for Green Hydrogen plants as defined in the ‘Integrated Clean Energy Policy’ of Rajasthan). The eligibility criteria and limits for CSS, AS, and transmission and wheeling charges related to Green Hydrogen shall be governed accordingly.

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