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Rajasthan Urja Vikas & IT Services Limited had filed a petition with the Rajasthan Electricity Regulatory Commission (RERC) seeking extension of power purchase agreements (PPAs) with three wind power generators—M/s SML Electricals India Private Limited, Rajasthan State Mines and Minerals Limited, and M/s Bijapur Renewable Energy India Private Limited. The existing PPAs were originally signed for 20 years and had reached or were nearing completion. The petitioner requested to extend these agreements for an additional five years at a revised tariff of ₹2.44 per kWh, which was the lowest rate discovered through a competitive bidding process by SECI.
M/s SML Electricals India Private Limited had a 2.4 MW project with a PPA valid from 19 February 2004 to 9 March 2024. The extension proposed was from 10 March 2024 to 9 March 2029. Rajasthan State Mines and Minerals Limited had a 5 MW plant (of which 50% power was considered for extension) with a PPA from 5 July 2003 to 28 September 2023, and the new term was proposed from 22 March 2024 to 21 March 2029. M/s Bijapur Renewable Energy had two projects: one of 1.2 MW running from 17 September 2003 to 29 November 2023 and another of 0.6 MW from 19 February 2004 to 2 March 2024. The proposed extensions were from 30 November 2023 to 29 November 2028 and from 3 March 2024 to 2 March 2029 respectively.
The petitioner highlighted that Rajasthan’s DISCOMs were facing a shortfall in meeting their Renewable Purchase Obligation (RPO) targets. The Commission in its earlier order dated 9 October 2020 had already directed DISCOMs to cover the shortfall by procuring more renewable energy. Therefore, the proposed extension of the PPAs was presented as a timely step to help meet these RPO targets.
All the respondents submitted their consent to the extension proposals and agreed to the new tariff of ₹2.44/kWh. Draft supplementary PPAs were also submitted and vetted. RERC’s regulation allows DISCOMs to procure power from renewable projects during an extended period if there is mutual agreement and if such procurement helps meet RPO targets.
After reviewing the petition, submissions, and compliance reports, RERC found that the proposed extensions were justified, considering the RPO shortfall and the existing provision in the PPAs allowing for extension by mutual agreement. The Commission also observed that in similar past cases, it had allowed PPA extensions under the same tariff conditions.
However, the Commission did not agree with the petitioner’s request to allow future PPA extensions without regulatory approval. It emphasized that such matters must go through the established regulatory procedures.
Finally, RERC ordered that the PPAs for the three respondents be extended for five years from the expiry date of their respective agreements or until completion of 25 years from the commercial operation date—whichever comes earlier. The tariff for the extended period shall be ₹2.44/kWh, and supplementary PPAs must be signed accordingly. The petition was thus disposed of on 1 August 2025.
