The Rajasthan Electricity Regulatory Commission (RERC) has released draft amendments to its Renewable Energy Tariff Regulations, proposing to extend the validity of the current framework until March 31, 2028, while introducing several changes affecting biomass power projects, energy storage systems, payment discipline, and open access provisions.

Stakeholders can submit their feedback by March 27, 2026.

The final amendments will come into force from April 1, 2026.

The proposed changes extend the applicability of the existing renewable energy tariff regulations, originally notified in 2020 and subsequently extended. Under the new proposal, the regulations will apply to tariff determination from April 1, 2020, through March 31, 2028.

The control period for these regulations will span eight financial years. According to the Commission, the existing regulatory framework remains adequate; therefore, a new set of regulations is not necessary at this stage.

The draft regulations also propose that if payment of any bill under the regulations is delayed by more than 45 days from the date of presentation, the generating company will levy a late payment surcharge as specified in the central rules.

The Commission has proposed revisions to tariff parameters for biomass-based power projects. The normative gross calorific value (GCV) of biomass fuel used for tariff determination will be revised to 3100 kcal per kilogram. The proposal follows representations from biomass power developers and an assessment of biomass availability in the state.

A study cited by the Commission indicates that the weighted-average GCV of biomass in Rajasthan is about 3062 kcal per kilogram, whereas most state electricity regulatory commissions and the Central Electricity Regulatory Commission use 3100 kcal per kilogram as the benchmark for tariff calculations.

However, the Commission has not proposed any change to the useful life of biomass power plants. Developers had requested that the useful life be extended from 25 years to 30 years, citing renovation and modernization investments. The Commission stated that extending the useful life would constitute a structural change affecting depreciation, operation, and maintenance costs, as well as the overall tariff framework.

It also noted that the Central Electricity Regulatory Commission retains a useful life of 25 years for biomass projects and that no Rajasthan-specific technical or economic study has been submitted to justify a revision.

To address operational issues arising from variations in biomass generation, the draft introduces a new provision to calculate the capacity utilization factor and the plant load factor. These parameters will be determined annually, using 8,766 hours per year for the calculation.

The Commission said this approach provides a more consistent method of accounting for operational variations rather than adopting mechanisms such as year-end settlement of excess generation or monthly relaxation in generation limits.

The amendments also modify provisions related to energy storage systems. Instead of prescribing a fixed minimum rated energy capacity, the draft states that the minimum capacity will be determined by the project proposal and agreed upon by the procuring entity.

The Commission said energy storage technologies have evolved rapidly, and projects may serve different grid applications such as renewable energy firming, peak demand management, frequency regulation, and ancillary services. Allowing project-specific capacity will provide flexibility while retaining oversight through the procuring entity’s approval.

In addition, the draft specifies that the minimum efficiency for storage systems based on solid-state battery technology will be 85%, aligning with the approach adopted in the Central Electricity Regulatory Commission’s renewable energy tariff regulations.

The Commission has also proposed amendments to align certain provisions of the renewable energy tariff regulations with the state’s Green Energy Open Access Regulations. Under the draft changes, relaxations related to transmission and wheeling charges, as well as cross-subsidy and additional surcharges, will be governed by the provisions of the green energy open access regulations.

Similarly, the banking of renewable energy will be governed under the open access regulatory framework rather than the tariff regulations. The Commission said consolidating these provisions under the green energy open access regulations will help avoid inconsistencies and interpretive ambiguity.

The Commission recently issued draft amendments to its Renewable Purchase Obligation Regulations proposing changes to align the state’s framework with recent central government notifications under the Energy Conservation Act.

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