RERC Increases Capacity by 400 MW under KUSUM Yojana

RERC Increases Capacity by 400 MW under KUSUM Yojana

In Rajasthan, Solar PV Projects Totaling 725 MW will be Installed now, under Component-A of the KUSUM Yojana

The Rajasthan Electricity Regulatory Commission (RERC) has increased the capacity of solar PV projects to be installed in Rajasthan under Component-A of the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyaan (KUSUM) Yojana by 400 MW.

Rajasthan Urja Vikas Nigam Ltd. (RUVNL) had petitioned the state electricity regulatory commission (SERC) on behalf of the distribution companies (DISCOMs) for approval to extend the tariff already determined for Component-A for additional capacity of 400 MW.

Per ministry guidelines, in its order, the commission had fixed levelized tariff under Component-A at Rs 3.14/kWh. This will act as ceiling tariff for the competitive bidding for solar projects. Initially, 325 MW of solar PV projects had been earmarked to be set up under Component-A.

After the RERC’s February 2020 order, Rajasthan Renewable Energy Corporation Limited (RRECL) on the request of the DISCOMs/RUVNL invited Expression of Interest (Eol) from the developers/farmers and found that it will be handing out letters of award for a total of 725 MW of solar PV capacity. A total of 674 applicants had expressed interest to develop 815.5 MW of solar PV capacity.

While going through submissions made, RERC was of the view that DISCOMs are ready to purchase the additional energy at the tariff determined; Rs 3.14/kWh as it will fulfill their RPO and also provide them the benefit of distributed generation and reduced losses. Farmers will also be benefited observed RERC, while passing the order that capacity under Component-A of KUSUM Yojana be extended to 725 MW.

RERC has also advised the DISCOMs to aggressively pursue with MNRE for increase in their allocation under Component-A of KUSUM Yojana so that the Procurement Based Incentive (PBI) will be available to them.

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Saumy Prateek

Saumy has been a writer with Reuters, Mercom India and Rystad Energy.