Policy framework for solar projects in Rajasthan

Government of Rajasthan has provided the right kind of enabling framework for promotion of solar energy in the state. It had come up with Policy for Promoting Generation of electricity through Non-conventional Energy sources in 2004 and Rajasthan state solar policy in 2011.

Policy For Promoting Generation Of Electricity Through Non-Conventional Energy Sources 2004

The various incentives available under this policy are as follows:

  • Exemption from Electricity Duty: Consumption of electricity generated by eligible producers for its captive use or for sale to a nominated third party will be exempted from electricity duty @50% for a period of 7 years from Commercial Operation Date (COD)
  • Grant of incentives available to Industries: Generation of electricity from nonconventional energy sources shall be treated as eligible industry under the schemes administered by Industries Department and incentives available to industrial units under such schemes shall also be available to the power producers.
  • Single window clearance: A state level empowered committee will provide single window clearance on proposals received for developing the power plants based on Non-conventional energy sources
  • Allotment of land on concessional rates: the government land required for power projects based on non-conventional sources of energy shall be allotted to developer at concessional rates viz 10% of DLC rates
  • Exemption from merit order dispatch regulations and availability of wheeling and banking facilities to the power producer

Rajasthan Solar Energy Policy 2011

The objective of Rajasthan Solar Energy Policy 2011 is to establish Rajasthan as a National leader in solar energy in phased manner by creating the policy frame work for promoting use of solar energy in various applications and move towards achieving following objectives:

  • Developing a global hub of solar power of 10000-12000 MW capacity in next
  • 10-12 years to meet energy requirements of Rajasthan and India.
  • Contributing to long term energy security of Rajasthan as well as ecological security by reduction in carbon emissions
  • Providing a long term sustainable solution for meeting energy needs and considerably reducing dependence on depleting fossil fuel resources like coal, oil and gas
  • Productive use of abundant wastelands, thereby utilizing the non-industrialized desert area for creation of an industrial hub
  • Creating an R&D hub for deployment of various combinations of solar power technologies and solar based hybrid co-generation technologies which will focus on improving efficiency in existing applications, reducing cost of balance of system
  • To achieve the grid parity in next 7-8 years, the State will encourage the Solar Power Developers to establish manufacturing plant of their technology in Rajasthan
  • Create a solar centre of excellence which would work towards applied research and commercialization of nascent technologies to accelerate the march to grid parity

 Highlight – Rajasthan Solar Energy Policy

  • The Rajasthan State has sanctioned 66 MW solar power projects in compliance of the RERC’s orders. These sanctioned projects were migrated to National Solar Mission by the State Government.
  • The Rajasthan State will promote setting up of solar power projects for direct sale to Discoms of Rajasthan. The total capacity under this category will be distributed equally between SPV and CSP based power plants. The total maximum capacity under this category for phase-1 (up to 2013) and phase-2 (2013-2017) would be 200 MW and 400 MW respectively.
  • Selection of these Solar Power Projects will be through tariff based competitive bidding process. The State Government may undertake the review of targets mentioned above as and when the need arises in view of any technological breakthrough resulting in substantial decrease in cost of Solar Power generation.
  • The Rajasthan State will promote Solar Power Producers to set up Solar Power Plants of unlimited capacity for captive use or sale of power to 3rd party / States other than Rajasthan.
  • The Rajasthan State will promote deployment of Roof Top and Other Small Solar Power Plants connected to LT / 11KV Grid as per guidelines of MNRE under Rooftop PV & Small Solar Generation Programme (RPSSGP) of NSM and orders of appropriate Regulatory Commission.
  • The State will promote setting up of small solar power plants connected at 11 KV grid of 1 MW capacity each for direct sale to State Discoms of Rajasthan. The total capacity under this category will be 50 MW. The selection of the projects will be through tariff based competitive bidding process.
  • Solar Power Plants of unlimited capacity for sale through RE (Solar) Certificate mechanism. The Solar Power Producers will be required to apply for accreditation to the State Agency and thereafter to Central Agency for registration and issuance of RE (Solar) certificate under REC mechanism as per order/regulations of appropriate Commission issued in this regard.
  • The Rajasthan State will promote Solar Power Producers to set up Solar Power Plants along with Solar PV manufacturing plants in Rajasthan. The target under this category will be 200 MW up to 2013. This will result in establishment of 500 MW per annum of SPV manufacturing capacity in the State.
  • After registration of the project, RREC will recommend to the concerned District Collector for reservation of the land identified by the Solar Power Producer.

Other initiatives for solar power development include the following:

  1. 1.    Development of Solar Parks in State
  • o The Rajasthan State will develop Solar Parks of more than 1000 MW capacity in identified areas of Jodhpur, Jaisalmer, Bikaner and Barmer districts in various stages.
  • o The State Government, under this policy, will act as the facilitator to attract global investment in Rajasthan and will provide the necessary infrastructure, regulatory and other Government support required through the Nodal Agency to rapidly ramp up Solar Power generation capacity in the State.
  • o Solar Park shall consist of various zones viz. Solar Power Plants, Manufacturing Zones, R & D and Training Centers zone and other amenities zones.
  • o The State will extend all facilities and fiscal incentives provided by Central Government / National Solar Mission to manufacturers in Solar Parks.

2.    Purchase of Solar Power by Discoms of Rajasthan

  • The Discoms of Rajasthan will purchase power produced by the projects sanctioned by central and state government under the policy framed by respective governments.
  • The Discoms of Rajasthan will purchase the solar power even if the total quantum of power exceeds Renewable Purchase Obligations prescribed by RERC

3.    Creation of Rajasthan Renewable Energy Infrastructure Development Fund

  • State Government will create a separate Rajasthan Renewable Energy Infrastructure Development Fund for accelerated development of solar/renewable energy in Rajasthan.
  • This fund will be utilized for creation of infrastructure such as transmission network, roads etc. For accelerated development of renewable energy as per the guidelines issued by State Government in this regard.

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