The Rajasthan Electricity Regulatory Commission (RERC) has granted approval for Rajasthan Urja Vikas Nigam (RUVNL) to procure 490 MW of hybrid power (combining solar and pumped storage) from the Solar Energy Corporation of India (SECI) at an average tariff of ₹4 (~$0.048)/kWh.

Background

SECI conducted a competitive bidding process in which Greenko Energies had emerged as a winner to supply 900 MW of power at a peak tariff of ₹6.12 (~$0.074)/kWh.

SECI informed the RUVNL about additional value-added features offered by the developer, Greenko Energies Private Limited (GEPL). The features included higher operational flexibility, a 100% firm power supply with no revisions to the day-ahead schedule, customization options based on discussions with the discoms, and the flexibility to request peak supply during specified time windows.

GEPL later revised its offer to supply 490 MW of energy to RUVNL for 25 years at an average tariff of ₹4 (~$0.048)/kWh, which includes a trading margin of ₹0.07 (~$0.00084)/kWh paid to SECI.

After evaluating the tender’s features and the added flexibility provided by SECI and Greenko, RUVNL decided to procure 490 MW of power. It expressed consent, specifying the tariffs and additional flexibility terms. These included commitments to firm schedules, peak, and off-peak power supply, exemption from certain change-in-law provisions, clearly defined billing tariffs, compliance with renewable purchase obligation (RPO) and hydro purchase obligation (HPO), and no liability for inter-state transmission charges and losses.

Greenko submitted an undertaking to SECI, fully accepting RUVNL’s terms and conditions.

Despite RUVNL’s continuous efforts to meet the prescribed RPO obligations, it experienced challenges in achieving these targets, particularly concerning their solar obligations. Consequently, RUVNL executed a power sale agreement with SECI, agreeing to purchase 490 MW of hybrid power.

RUVNL submitted that the decision to procure electricity, especially hybrid power with guaranteed peak supply, holds significant benefits for Rajasthan. It promises a reliable, cost-effective power supply, aids in fulfilling RPO obligations, and offers access to low-cost renewable energy during off-peak hours.

However, the entire process of power procurement can only proceed with the Commission’s formal approval, which is being sought following the completion of the tariff adoption process by CERC.

Commission’s Analysis

The Commission noted that despite efforts, there have been shortfalls in meeting these RPO targets, particularly the solar obligation. Furthermore, as of the present, there is no operational capacity tied up by Rajasthan DISCOMs to meet their HPO.

The Commission acknowledged that the availability of solar power is expected to address the shortfall in RUVNL’s solar obligations, while the power from the pumped storage power plant is intended to fulfill the HPO of the DISCOMs.

The Commission also recognized the significant features of the proposed power procurement, particularly the assured peak power supply, which is expected to be highly beneficial. This feature ensures that RUVNL won’t need to purchase power at higher tariffs during peak hours, and the availability of low-cost renewable energy during off-peak hours will aid in meeting RPO obligations.

Considering all the facts, the Commission granted approval for RUVNL to procure 490 MW of hybrid power from SECI at an average tariff of ₹4 (~$0.048)/kWh.

In September, the Commission granted approval to RUVNL to extend the power purchase agreements with 12 wind power generators by five years. It said that the tariff for the extended period will be ₹2.44 (~$0.029)/kWh as mutually agreed between RUVNL and the 12 wind power generators.

Subscribe to Mercom’s real-time Regulatory Updates to ensure you don’t miss any critical updates from the renewable industry.