RERC Proposes Free Solar Power to Rajasthan DISCOMs

The Rajasthan Electricity Regulatory Commission (RERC), which issued the tariff decision for 2022–2023 last month, urged the state government to explore adopting legislation requiring solar power providers that are exporting electricity to provide 10% free power to the state’s DISCOMs.

Over the past year, the subject has occasionally been discussed in meetings between government officials and think tank members from the sector. But there’s no denying that an increasing number of stakeholders who have strong opinions on both sides of the issue are now part of the RERC’s council.

Those who support corporations that offer free electricity claim that the generators heavily rely on state resources, including large tracts of land, electrical infrastructure, and the environment. Compared to any other business, solar power utilises the most land. The entire ecosystem and local resources are taken over in the process.

They contend that as a result, it is morally and legally acceptable for the government to require solar power generators to provide 10% of their free energy to the state so that it may distribute it to the local populace. However, members of the solar business claimed that the Rajasthan Renewable Energy Corporation already charged electricity producers who sold their output to consumers outside the state Rs 2 million per megawatt.

The state government already receives funding from projects involving the interstate transmission system (ISTS). They should stop billing the Renewable Energy Development Fund and start using their power instead if they want free electricity. The developing industry will suffer if this recommendation is taken seriously and enacted into legislation, according to Sunil Bansal, president of the Rajasthan Solar Association.

It will set a poor precedent in the nation with other coal, wind, and hydro-rich states perhaps following suit if other solar power providers are required to pay 10% free power in Rajasthan.

Rajasthan has more than 14,000 MW of installed solar power capacity, and the pipeline of projects is currently strong due to the availability of land. Some government officials worry that forcing free electricity onto the generators may deter investors from investing in the state. Senior government officials admitted that they are unsure about the law’s validity.

These nationwide initiatives take advantage of the nationwide transmission system. Additionally, a central organisation conducts the bids. This is why drafting a law like this would be difficult, according to the government official.

The free power debate will continue as polls approach because political leaders will utilise the RERC advisory to support their case and engage voters to win elections.