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The Rajasthan Electricity Regulatory Commission has taken an important decision to support renewable energy growth in the state by allowing the extension of power purchase agreements for two wind energy companies. The order was issued on August 25, 2025, by Chairman Dr. Rajesh Sharma and Member Hemant Kumar Jain. The case came up after a petition was filed by Rajasthan Urja Vikas & IT Services Limited, which acts as the authorized representative of the state distribution companies. The petition requested an extension of five years for the expired contracts with two wind energy producers, M/s Transport Corporation of India Limited and M/s Agarwal Industrial Corporation Limited. These companies had completed their 20-year agreements, and their plants began operations in September 2004. The first company operates a two-unit wind project with a total capacity of 2.5 MW, while the second has a 1.25 MW plant.
The petition highlighted that Rajasthan’s distribution companies are facing difficulty in meeting their renewable purchase obligation targets, which have been mandated by the Commission. To address this gap in renewable energy procurement, the extension of these power purchase agreements was sought. Both wind companies agreed to the extension at a tariff of Rs. 2.44 per unit, which was described as the lowest rate discovered through a competitive bidding process conducted by SECI. The petition also referred to earlier cases where the Commission had approved similar extensions for other wind power projects, setting a clear precedent in favor of such approvals.
In reviewing the matter, the Commission considered all the details presented. It was observed that there was indeed a shortfall in the compliance of renewable purchase obligations by the state’s distribution companies. Regulation 10 of the RERC (Terms and Conditions for Determination of Tariff from Renewable Energy Sources) Regulations, 2020, provides that renewable energy projects may continue to supply power during an extended period if it helps to meet RPO targets. The Commission also took into account that the useful life of a wind power project is considered to be 25 years as per the regulations, and this supported the argument that these plants could continue to operate effectively beyond their original 20-year contracts.
After considering all the submissions, the Commission concluded that the extension of these agreements would help the distribution companies meet their renewable energy obligations and would also be in line with regulatory provisions. The order stated that the PPAs for the two companies will be extended for five years from the date of expiry of their original agreements or up to 25 years from the date of commercial operation, whichever is earlier. The tariff for the extended period has been fixed at Rs. 2.44 per unit. The Commission also directed that supplementary PPAs should be signed between the petitioner and the two companies to formally record the extension.
This order ensures that the wind plants operated by the two companies will continue to supply clean power to Rajasthan’s grid. It also helps the state move forward in its renewable energy journey by strengthening the share of clean electricity in the overall mix. The decision not only resolves the petition but also gives the state distribution companies much-needed support in bridging their renewable energy shortfall. The Commission’s ruling shows a practical approach by encouraging existing renewable energy capacity to continue contributing to the state’s energy needs while aligning with long-term policy goals.
