RERC determines levelised tariff for solar projects under KUSUM scheme

The Rajasthan Electricity Regulatory Commission (RERC) has set the pre-fixed levelised tariff for Component-A of the Pradhan Mantri-Kisan Urja Suraksha Evan Utthan Mahabhiyan (PM KUSUM) programme at Rs 3.14 per kWh. Further, under the Component C of the programme, the rate for the purchase of excess power by distribution companies from grid-connected solarised agriculture pumps has been set at Rs 3.44 per kWh. This tariff will be applicable for the entire useful life cycle of the solar pumps set up under the program. For better outcomes, the state body has suggested that the distribution companies may try out Component-C in different climatic zones and areas with varying crops within Rajasthan.

The Ministry of New and Renewable Energy (MNRE) launched the guidelines for the implementation of PM KUSUM scheme on July 22, 2019, with the following components:

  • Component A: Set up 10 GW of decentralized ground-mounted grid-connected solar projects of individual project size up to 2 MW
  • Component B: Install 1.75 million standalone solar-powered agriculture pumps of individual capacity up to 7.5 HP
  • Component C: Solarise 1 million grid-connected agriculture pumps of individual capacity up to 7.5 HP

According to the commission, if the aggregate capacity offered is more than the notified capacity for any substation, the pre-fixed levelised tariff will only act as the ceiling tariff for bidding. Further, the distribution companies are free to file suitable petitions for redetermination of the levelised cost. The duration of the power purchase agreement will be 25 years for all projects covered under this program. The RERC stated that the tariff and other conditions stipulated under this order would remain applicable for the capacity initially allocated to the state by the MNRE under the Component-A and number of consumers under the Component-C of the program.


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