Frontrunner State: Renewable energy outlook for Rajasthan

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Rajasthan’s achievements in pow­er in­frastructure have been remarkable, with a total installed power capacity of 39.11 GW as of May 2023. Notably, re­ne­­w­able energy sources account for app­ro­xi­mately 58 per cent of the state’s total in­s­talled power capacity.

Solar power plays a pivotal role in Ra­jasthan. The state has surpassed Kar­na­taka and Gu­­jarat, establishing itself as a leader in the solar energy space by developing over 10 GW of solar power capacity. Solar energy accounts for approxima­tely 44 per cent of the overall state’s in­stalled power capacity and 76 per cent of its renewable energy capacity. To provide context, Rajasthan al­o­ne contributes 17.1 GW of solar power to the country’s t­otal installed capacity of 49 GW.

The state has effectively harnessed its wind resources, earning the third position in terms of the total installed wind power capacity, which sto­od at 5.1 GW as of May 30, 2023. In addition to its achie­ve­me­nts in renewable po­wer generation, Ra­­jasthan has also made significant stri­des in promoting and ad­opting electric vehicles (EVs). Through innovative policies, extensive infrastructure development and a proactive appro­ach to clean energy, the state has emer­ged as a trailblazer in the field of electric mobility.

Renewable Watch takes a look at recent tenders, regulatory obligations and the outlook for the renewable energy sector in Rajasthan…

Recent tenders

In June 2023, Ajmer Vidyut Vitran Nigam Li­mited floated a tender for developing a 72,33 MW grid-connected solar power pro­ject under Component C of the PM-KUSUM scheme for feeder solarisation. In the same month, Jodhpur Vidyut Vitran Ni­gam Limited (JDVVNL) issued seven tenders for the installation and commissioning of 532.12 MW of grid-connected solar po­wer in various subdivisions of the Jalore circle under the PM-KUSUM scheme.

In May 2023, Jaipur Vidyut Vitran Nigam Limited and JDVVNL issued tenders for the installation and commissioning of 347 MW and 452 MW of grid-connected solar projects under the PM-KUSUM scheme, respectively. In the same period, Rajas­th­an Electronics and Instruments invited bids to empanel agencies for location id­en­tification and installation of 222 EV ch­arging stations across the country.

In April 2023, PFC Consulting Limited invited bids to build an interstate transmission system for the evacuation of power from Rajasthan renewable energy zones on a build-own-operate-transfer basis.

In March 2023, JDVVL floated a tender to develop 24 projects with an aggregate capacity of 60.48 MW under Component C of the PM-KUSUM scheme in various subdivisions of Jaisalmer.

In January 2023, Rajasthan Urja Vikas Nigam Limited (RUVNL) invited bids to set up 1,500 MW of interstate transmission system-connected wind-solar hybrid po­wer projects anywhere in India with the req­ui­red storage, enabling distribution companies to have flexibility in scheduling power. The Rajasthan government signed MoUs for nearly Rs 1.23 trillion in renewable en­ergy projects under the Rajasthan investment programme. In addition, RUVNL flo­ated a tender to develop 1 GW of state tra­ns­mission utility-connected so­lar power projects in the state.

Future outlook

Rajasthan’s future in the renewable energy space seems promising. With its abundant renewable resources, favourable po­licies and a proactive approach towards greening the grid, the state is well positioned to lead India’s clean energy ambitions. Going forward, positive regulations will play a pivotal role in further improving the business environment for renewable energy development. In May 2023, the Ra­jas­than Elec­tri­city Regulatory Commis­sion proposed amendments to streamline procedures for developing renewable en­ergy projects for captive use, such as allo­wing banking ann­ually, making it attractive for end-users.

In addition, three new regulations have be­en proposed to implement green energy tariffs, green certificates and ratings in line with the Green Energy Open Access Rules, 2022. The commission has issued the draft Terms and Conditions for Tariff Determination from Renewable En­ergy So­ur­ces (First Amendment) Regula­tions, 2023, which propose changes related to the green energy tariff, captive generating projects, banking of energy, transmission and wheeling charges, and green certificates. Moreover, a new rene­wable pu­r­ch­a­se obligation trajectory until 2029-30, in­cluding energy storage, has been anno­unced by the commission in June 2023. The changes align with the re­gulation iss­ued by the Ministry of Power and will be effective from April 1, 2024.

Rajasthan has set ambitious targets to accelerate the growth of its renewable en­ergy capacity. In 2023-24, the state aims to install 11 GW of renewable energy projects. By scaling up solar and wind power de­ployment, adopting hybrid energy solutions and fostering partnerships, Rajas­th­an is positioned to create a greener, clea­n­er and more prosperous future for its residents and make a significant contribution to India’s renewable energy targets.

By Anusshka Duggal