RERC Revises Regulations to Determine Tariffs for Solar and Wind Projects

The Rajasthan Electricity Regulatory Commission (RERC) has announced that it has concluded new regulations to revise its terms and conditions for the determining tariff for renewable energy sources – wind and solar energy. These regulations were primarily passed in 2014.

These regulations will be implemented from the date of their announcement in the official gazette.

Vital Highpoints from the New Regulations

• Tariff norms according to these regulations will continue to remain applicable until notification of the revised regulations.
• RERC will determine project-specific tariff, on a case-to-case basis, for solar photovoltaic, solar thermal, wind and other renewable energy projects in Rajasthan.
• A petition for the determination of project-specific tariff must be accompanied by a fee determined by RERC.
• Detailed project report outlining technical and operational details, site-specific aspects, the premise for capital cost and financing plan, details of installation, manufacturer’s/supplier’s guaranteed and other technical particulars, recommended operation and maintenance practices and public safety requirements need to be submitted along with a petition for tariff determination.
• The dispatch principles for the electricity generated from wind and solar energy projects will be according to the provisions of the Central Electricity Regulatory Commission (Indian Electricity Grid Code) Regulations, 2010, except for cases where specific provisions have been made by the RERC.
• For project specific tariff determination, the generating company will submit the break-up of capital cost items along with its petition.
• If the equity deployed is more than 30 percent of the capital cost, equity more than 30 percent will be treated as a normative loan.

RERC had delivered the draft regulations in January 2019 to request comments and suggestions from stakeholders.