Solar power projects in Rajasthan are in danger, as Rajasthan Rajya Vidyut Utpadan Nigam Ltd. (RVUN) and the Rajasthan Urja Vikas Nigam Ltd. (RUVNL) having a dispute on tariff and new bidding process. RVUN filed a petition to adopt the tariff for a new 900 MW solar power project with the same terms and conditions applied in the previous 810 MW solar project. The RUVNL raised their concern on transparency and compliance of the bidding process and pointed out that no bidding process was created for the 900 MW solar projects. However, the commission rejected the petition because adopting a tariff without a new bidding process is against the Ministry of Power’s guidelines. This highlights that transparency and compliance are important in renewable energy project procurement.

The RVUN  seek the approval of the petition to have the tariff for the new 900 MW solar power project installed by Coal India Limited (CIL) within RVUN’s 2,000 MW Solar Park. This project aims to be adopted under the same terms and conditions as the previous 810 MW solar project.

The petition aligned with the Ministry of Power guidelines, and it comes under a part of the initiative to boost renewable energy by integrating it with existing thermal and hydropower generation. This programme aims to substitute expensive thermal energy with renewable sources with the help of traditional power sources.

RVUN signed a deal with CIL(coal India Limited) to install the solar power project in October 2022. A bidding process for a previous 810 MW project won at a rate of ₹2.64 per kWh from NLC India Limited . RVUN want to apply this same rate for the new project. Rajasthan Urja Vikas Nigam Ltd. (RUVNL) responded to the petition, and the case was heard in late April 2024. Both parties presented their matter to the court.RVUN argued that the new 900 MW project should use the same tariff rate of ₹2.64 per kWh as the previous 810 MW project. They also said this approach aligns with the Ministry of Power to boost renewable energy.

However, the other party Rajasthan Urja Vikas Nigam Ltd. (RUVNL) raised concerns regarding the transparency of the bidding process for the new project. They also said that any tariff adoption must obey the competitive bidding guidelines to ensure fairness. They were further, pointed out that no separate bidding process for the 900 MW project was conducted.

The commission has looked into the matter and pointed out that RVUN did not conduct a new bidding process for the 900 MW project, which the Ministry requires of Power’s guidelines. Found that approving this tariff would be against the guidelines. As a result, a petition was not approved and concluded that a transparent and proper bidding process is required to ensure fair tariff adoption for new renewable energy projects.

.The petition was rejected and the commission advised that future tariff adoption must follow competitive bidding rules. This matters set an example that the need for transparency and compliance in renewable energy projects is important to ensure fairness and integrity in tariff adoption and to promote renewable energy sources.

India is growing in the solar energy sector with the help of government support by creating new schemes often. Some of the schemes are  Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyaan (PM KUSUM), New Solar Power Scheme (for PVTG Habitations/Villages) under PM JANMAN etc.Therefore it’s important to maintain proper terms and condition for the execution of the operation. This case highlights that ensuring transparency and adherence to guidelines is important to environments for renewable energy growth, promoting sustainability, and safeguarding the interests of consumers and companies alike.

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Our perspective:

Solar Energy is a booming state and continues its growth. It is important to maintain a transparent and compliant bidding process to ensure the fair adoption of tariffs for new renewable energy projects and thus promote it . As a result, the rise in solar energy power will be beneficial for us.