RERC approves five-year PPA extension for wind projects

The Rajasthan Electricity Regulatory Commission (RERC) has provided approval to Rajasthan Urja Vikas Nigam Limited for the extension of power purchase agreement (PPAs) by five years with 12 wind power generators. As per the agreement between RUVNL and 12 wind power generators, the commission has set the tariff to be Rs 2.44 per kWh for the extended period. The commission further stated that RUVNL and the 12 wind power generators may sign an additional PPA for the extension of their previous PPAs. The extension will assist in meeting targets for renewable purchasing obligations (RPOs), which the state distribution companies (discoms) are now having trouble meeting.

For this extension, the discom must establish an agreement with the renewable energy project developer under terms agreed upon, with the ultimate approval resting with the Commission.

In August 2023, the RERC gave permission to Rajasthan Urja Vikas Nigam Limited to clear its outstanding dues owed to renewable energy developers who supplied solar and wind energy to the discom outside of the terms of the PPA.

In June 2023, in a suo motu order, the RERC announced the completion of new regulations covering RPOs for entities with obligations in the state. The decision comes after the Ministry of Power established RPO trajectories for several clean energy sources.