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Rajasthan Urja Vikas & IT Services Limited (RUVITL), acting on behalf of the Rajasthan distribution companies (DISCOMs), filed a petition before the Rajasthan Electricity Regulatory Commission (RERC) to extend the power purchase agreements (PPAs) of two wind power generators for an additional five years. The PPAs were originally signed for a period of 20 years, which had already concluded. The request was made under Regulation 10 of the RERC (Terms and Conditions for Determination of Tariff from Renewable Energy Sources) Regulations, 2020.
The two wind power generators involved are Rajasthan Renewable Energy Corporation Limited (RRECL) with a capacity of 25 MW and FFR Software Private Limited with a capacity of 1.25 MW. Their respective PPAs commenced on 5 July 2003 and concluded in 2023 and 2024. The last tariffs applicable were ₹5.7135/kWh for RRECL and ₹3.92/kWh for FFR Software Pvt. Ltd.
RUVITL submitted that both generators agreed to extend their PPAs at a revised tariff of ₹2.44/kWh, which is the lowest tariff discovered through a competitive bidding process conducted by SECI on 13 February 2018 under ISTS-WIND-TRANCHE III. The petitioner also referred to the shortfall faced by the Rajasthan DISCOMs in meeting their Renewable Purchase Obligation (RPO) targets, highlighting the importance of such extensions to bridge the gap.
In support of the petition, RRECL and FFR Software Pvt. Ltd. submitted their consent letters to extend the PPA term at the mutually agreed tariff of ₹2.44/kWh. The Commission reviewed the petition, noted the earlier orders approving similar extensions, and also referred to its order dated 9 October 2020, directing DISCOMs to bridge RPO shortfalls by procuring renewable energy through reverse bidding.
The Commission analyzed the RPO compliance data, which clearly showed that the Rajasthan DISCOMs were consistently underachieving their RPO targets throughout the year 2023–24. For example, in April 2023, the target was 21.66% while the achievement was only 15.02%. In months like November and January, the shortfall was more significant, with only 9.41% and 8.95% achieved, respectively, against the same target.
Considering all submissions and documents, the Commission approved the extension of the PPAs of both respondents for a further five years or until the completion of a total 25-year term from their respective commercial operation dates, whichever comes earlier. The extended tariff was fixed at ₹2.44/kWh. The Commission also directed that supplementary PPAs be executed between RUVITL and the two generators to formalize the extension.
However, the Commission rejected the petitioner’s request to issue a general directive allowing future PPA extensions without Commission approval, stating that such matters must continue to follow the established procedures. With these directions, the petition was disposed of on 1 July 2025.
