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RAJASTHAN ELECTRICITY REGULATORY COMMISSION, JAIPUR

Suo-Motu
In the matter of determination of generic tariff for sale of electricity, in the State to the Distribution Licensees, from small solar power plants. Coram : Shri D.C. Samant, Chairman Shri S.K. Mittal, Member (F) Shri S.Dhawan, Member (T)

Date of Order:

29.9.2010

ORDER

1. Government of India announced Jawaharlal Nehru National Solar Mission (JNNSM) to give a big thrust to solar power generation in the country in tune with the objective of enhancing generation and use of clean energy visualised in National Action Plan on Climate Change (NAPCC). The National Solar Mission envisages that rooftop solar PV power projects and other small solar power plants connected to grid need to be encouraged to replace conventional power and diesel based generators. The mission also has a provision of providing generation based incentive for operators of roof-top Solar PV and other small solar power plants connected to grid. State Commissions are competent authority to determine the tariff payable to such roof top and other small solar power plant operators for sale of power to distribution licensees. 2. The Ministry of New and Renewable Energy (MNRE), Government of India, also issued draft guidelines in March, 2010 for rooftop PV and other small solar power plants connected to grid under National Solar Mission to launch a programme Rooftop PV & Small Solar Generation Programme (RPSSGP). The draft guidelines at para 5.1 make it clear that the programme was applicable to small solar PV projects (distinct from Solar thermal projects), as could be seen from the said provision quoted below:

(2)

5.1 Under phase I of JNNSM, it is proposed to promote only commercially established operational technologies ....... The project schemes proposing to deploy PV modules....shall alone be considered to be technically qualified and eligible for participation on RPSSGP scheme. 3. The Commission, in pursuance to the National Solar Mission and the draft guidelines for rooftop PV and other small solar power plants connected to grid issued by GoI, determined the generic tariff vide its order dated 25.5.10 for sale of electricity to the Distribution Licensees in the State. 4. The Commission in the said order dated 25.5.10, at para 64(7) has mentioned that this order also covers small solar plants. The relevant para is reproduced below:
(7) In addition, based on the comments of one of the respondents and the public stakeholders, the Commission has decided to expand the scope of roof top PV systems to cover small solar systems of 1 to 3 MW capacity connected at 33 kV or 11 kV i.e.HT system, and also the small systems below 1 MW capacity to be connected to LT system in line with what is envisaged in draft GoI guidelines. However, in case there is any change in the final guidelines of GoI, the same would be applicable.

5. (1) The tariff determined by the Commission vide its order dated 25th May, 2010 is reproduced below:
70. The generic tariff levellised for 25 years for two different technologies (SPV & Solar thermal) and for Roof Top and small Solar PV Installations is being determined as under:

Table-15
S.No. 1. 1. 2. 3. Particulars 2. Solar Thermal Power Plants commissioned by 31.3.2013 Solar Photo Voltaic (PV) Power Plants commissioned by 31.3.2012 Roof Top Solar PV Installations and other small solar power generation plants covered in GoIs subsidy scheme commissioned by 31.3.2012 Tariff (Rs./kWh) 3. 12.58 15.32 15.32

(2) As could be seen from the above table, the tariff determined for Photovoltaic power projects was also extended to roof top systems and other small solar power plants. As only Photovoltaic plants were included in the draft guidelines of Govt. of India, the tariff extended to

(3)

small solar projects was the same as applicable for MW scale PV solar projects. It may be clarified that MW scale project refers to bigger MW scale project other than the roof top solar PV project and smaller solar projects covered in subsidy scheme of GoI. 6. (1) The Ministry of New and Renewable Energy (MNRE), Government of India subsequently issued the final guidelines on 16.6.2010 for rooftop PV and other small solar power plants connected to grid. The final guidelines at para 5.1 are as under:
5.1 The project schemes proposing to ..... For solar thermal technology, it will be mandatory that the technology is demonstrated and such projects have been in operation for 1 year.

(2) Thus, final guidelines include small solar thermal projects also for availing benefits under National Solar Mission, whereas in draft guidelines only solar PV projects were covered. 7. Since the Government of India has now allowed the small solar thermal projects also to avail the benefits under National Solar Mission, the Commission, therefore have to specify tariff for small Solar Thermal Power plants so that they may not be deprived of the benefits under National Solar Mission. As could be seen at para 4 of this order, the Commission in its order dated 25.5.10 at para 64(7) has already clarified that in case there is any change in the final guidelines of GoI, the same would be applicable. 8. The Commission in the order dated 25.5.2010 had observed that it was of the considered view that for promoting roof top systems on account of advantages of solar devices, the tariff as applicable for MW scale solar PV plants be extended to roof top devices also and the tariff for such projects was determined accordingly. The feed-in tariff so determined was applicable to other small solar PV devices of capacity to be prescribed by GoI for the incentive scheme under Solar Mission even if such plants were installed on land. On the same principle, the tariff as applicable for MW scale solar thermal plants needs to be extended to small solar thermal plants also. 9. The tariff order dated 25.5.10 accordingly stands amended to extend the tariff as applicable for MW scale solar thermal plants to small solar thermal plants covered in GoIs subsidy scheme and the entry No.3 in table-15 of para 70 of the said order is being re-worded alongwith a new entry at S.No.4 of the said table and the amended table is as under:

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Table-15 (amended)
S.No. 1. 2. 3. Particulars Solar Thermal Power Plants commissioned by 31.3.2013 Solar Photo Voltaic (PV) Power Plants commissioned by 31.3.2012 Roof Top Solar PV Installations and other small solar PV power generation plants covered in GoIs subsidy scheme commissioned by 31.3.2012 Small Solar Thermal Power generation plants covered in GoIs subsidy scheme commissioned by 31.3.2013 Tariff (Rs./kWh) 12.58 15.32 15.32

4.

12.58

10. In pursuance of the said amendment, para 71 of the said order is also being partially modified to the extent that the tariff of solar projects mentioned at S.No.4 (newly added S.No.) would also get reduced by Rs. 1.59/kWh for plants availing benefits of Accelerated Depreciation, as is applicable in case of MW scale thermal solar projects. 11. Copy of this order be sent to the State Govt., Central Electricity Authority, MNRE, RREC, distribution companies and be also placed on the Commissions website.

(S.Dhawan) Member

(S.K.Mittal) Member

(D.C. Samant) Chairman

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