Rajasthan Regulator Approves Extension Of Power Purchase Agreements For Twelve Wind Energy Projects At ₹2.44/kWh Tariff

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Rajasthan Urja Vikas Nigam Limited (RUVNL) has successfully secured the extension of power purchase agreements (PPAs) for 12 wind energy generators under the purview of the Rajasthan Electricity Regulatory Commission (RERC) (Terms & Conditions of Tariff determination from Renewable Energy Sources) Regulations, 2020. The PPAs were executed for a specified period with various generators operating wind power plants in different regions of Rajasthan. As the expiry dates of these agreements drew near, RUVNL took the proactive step of filing a petition for their extension.

Crucially, the generators in question conveyed their consent for the extension of PPAs, explicitly stating their agreement with the tariff rate of ₹2.44 per kWh. This rate had been previously approved by the RERC based on a tariff-based competitive bidding process conducted by the Solar Energy Corporation of India (SECI). According to the provisions within the PPAs, the extension period could span up to 5 to 10 years, subject to mutual agreement and the approval of the Commission.

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Commission’s Observations and Order

Upon careful consideration of the submissions, replies, rejoinders, and oral arguments from both the petitioner (RUVNL) and the respondent power generators, the Commission made a pivotal decision. It affirmed that distribution licensees have the discretion to procure power from renewable energy projects. However, for this particular extension, the distribution licensee must agree with renewable energy project developers during the extended period. These terms should be mutually agreed upon and subsequently approved by the Commission.

The Commission has ordered the extension of the PPAs for the respondent power generators for an additional five (5) years beyond the expiration date of their existing PPAs. The agreed-upon tariff for this extended period is set at ₹2.44 per kWh, aligning with the earlier SECI-approved rate. As part of the Commission’s directive, RUVNL and the respondents are encouraged to formalize these extensions through Supplementary PPAs, while the petition is disposed of.

This decision not only provides much-needed stability to the renewable energy sector in Rajasthan but also underscores the importance of mutual agreements and regulatory support in advancing the state’s commitment to clean and sustainable energy sources. It is expected to pave the way for continued growth and investment in renewable energy projects across the region.

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