RERC approves levelised tarrif for Jaipur discom's 4.24 MW solar plant

RERC approves levelised tarrif of Rs 2.89 For Kusum Component C Project

By Saur News Bureau/ Updated On Wed, Mar 9th, 2022

Highlights :

Jaipur Vidyut Vitran Nigam Ltd. had requested the Rajasthan Electricity Regulatory Commission to approve the levelized tariff discovered through competitive bidding for a 4.24 MW pilot solar power project for feeder level solarization under Component-C of the PM-KUSUM scheme.
The Ministry of New and Renewable Energy (MNRE) launched the Pradhan Mantri Kishan Urja Suraksha evam Uthan Mahabhiyan (PM-KUSUM) Scheme for farmers in 2019.
Under Component C of the scheme, solarisation of 10 lakh grid-connected agricultural pumps, with individual pump capacity up to 7.5 HP, is to be carried out.

RERC approves levelised tarrif of Rs 2.89 For Kusum Component C Project

The Rajasthan Electricity Regulatory Commission (RERC) recently ruled in favour of Jaipur Vidyut Vitran Nigam Ltd. (JVVNL), which had requested the commission to approve the levelized tariff discovered through competitive bidding for a 4.24 MW pilot solar power project for feeder level solarization under Component-C of the PM-KUSUM scheme.

The Ministry of New and Renewable Energy (MNRE) launched the Pradhan Mantri Kishan Urja Suraksha evam Uthan Mahabhiyan (PM-KUSUM) Scheme for farmers in 2019. Under Component C of the scheme, solarisation of 10 lakh grid-connected agricultural pumps, with individual pump capacity up to 7.5 HP, is to be carried out.

JVVNL submitted to RERC that it undertook the pilot project in pursuance of the MNRE Guidelines and also indicated the benefits likely to accrue from the implementation of the project: distributed generation promotes the indigenous production of solar components; reduction of losses, deferment of capital expenditure on network upgradation, and the fulfilment of RPO targets; proper energy accounting of solarized agriculture consumers using RMS data; saving of the subsidy outgo; and farmers getting daytime power as well.

Revising its justification for the implementation of the scheme, JVVNL further submitted to RERC that since the land cost is towards the creation of a self-owned land asset, therefore, there will effectively be an additional impact of 8 paise per unit on JVVNL due to annual lease rent payable in 25 years over and above the discovered tariff of Rs. 2.890 per unit for the pilot project.

In view of the above, JVVNL requested that RERC may consider and approve the discovered levelized tariff of Rs. 2.890 per unit for the pilot project of 4.24 MW in JVVNL under Component-C (feeder level solarization) of PM-KUSUM Scheme.

The commission stated that the RERC RE Tariff Regulations, 2020, will be squarely applicable to the pilot project and also for other solar projects set up for feeder solarization under Component-C of the Scheme akin to any other plant supplying power to the Distribution Licensees.

RERC also noted that the land cost and lease rental as per the dicom’s submission were likely to affect tariff and that these costs should be appropriately built in the levelized tariff and its impact should be well known to the Discom while carrying out the power purchase.

Therefore, the Rajasthan electricity regulator ruled that:

approval granted for levelled tariff of Rs 2.890 per unit for 25 yers for the the pilot project of 4.24 MW solar power plant for feeder level solarization under Component-C of PM-KUSUM scheme.
“However, the Petitioner shall take up the matter of payment of lease rent and land cost with the State Govt., so as to minimize its impact on the Discom for pilot as well as future projects under Component-C,” said RERC.
Given that the tariff of ₹2.89/unit was discovered on the basis of a single bid only, the discom also needs to analyse the reasons for the non-receipt of bids in requisite numbers and suitably modify the documents and timelines keeping in view the guidelines of KUSUM ‘C’ scheme with a view to entice the higher participation and discovery of a competitive tariff.
JVNNL is further directed that after taking up the matter with State Govt. to minimize the land cost and lease rent, it will incorporate the appropriate provision of land cost and lease rent payment in its future bids so as to receive appropriate cost-reflective bids. If after issue of revised bids, the State Government allows any changes in the structure of land cost/ lease rent same should be recovered/borne by the Discom.

“After making changes as discussed in preceding paras for bringing in the clarity about various costs and facilitating for higher participation of the bidders in the bid process, the petitioner may invite future bids appropriately and file a separate petition for approval of levelized tariff under feeder level solarization and for further directions on the issues arising out of learning from the pilot project,” RERC concluded.