Rajasthan Solar Energy Policy, 2014

Energy Security is key to economic growth to any country and state. Fossil fuel such as coal, gas, oil, etc. for conventional power generation is fast depleting and will be exhausted in coming decades. The conventional generation is also the source of greenhouse gas emission attributing to global warming and has adverse impact on climate. Therefore, a global shift towards sustainable renewable energy generation is being witnessed.

Vision :

To reduce the dependence on conventional sources of energy by promoting the development of non-conventional energy sources and most importantly, solar power thereby enabling the State in attaining self sufficiency in its energy needs. Our aim is to create an enabling environment for installation of 25000 MW of solar power through State or Private enterprises or through Public Private Partnerships or through individual efforts.

Objectives :

1. Developing a global hub of solar power of 25,000 MW capacity to meet energy requirements of Rajasthan and India.
2. Contributing to long term energy security of Rajasthan as well as ecological security by reduction in carbon emissions.
3. Providing a long term sustainable solution for meeting energy needs and considerably reducing dependence on depleting fossil fuel resources like coal, oil and gas.
4.Generating direct and indirect employment opportunities in all activities related to the generation of solar power.
5. Envisaging a solar centre of excellence that would work towards applied research and commercialization of nascent technologies to accelerate the march to grid parity.

RREC to act as Nodal Agency for Clearance of Projects :

a. Registration of projects.
b. Approval of projects.
c. Facilitating allotment of Government land.
d. Facilitating water allocation for Solar Thermal Power Plants.
e. Facilitating approval of power evacuation plan and allocation of bays etc.
f. Accreditation and recommending the solar power project for registration with Central Agency under REC mechanism. RREC will nominate State Level Facilitator for all projects of capacity above 20 MW.

Development of Solar Parks in the State :

1 .Solar Parks by RREC: RREC will act as a nodal agency for development of Solar Parks in Rajasthan. A special purpose vehicle (SPV) in the form of a subsidiary company of RREC has been established for development of infrastructure and management of Solar Park. RREC / SPV will formulate guidelines in respect of allotment of land and sharing of development cost by the solar power producers.
2. Development of Solar Parks by Private Sector Developers:
3. State will promote development of Solar Parks by Private Sector Developers. The Private Sector Solar Park Developer will submit the application to RREC for development of Solar Park along with processing fee @ Rs 5000 per Hectare + service tax subject to maximum of Rs 10 Lacs + service tax for each Solar Park. The plan of solar park will be approved by RREC within a period of 30 days of submission of application.
4. The Private Sector Solar Park Developer(s) shall be responsible for registration of the project of solar power producer within their park with RREC as per provisions of “Rajasthan Solar Energy Policy, 2014”. These projects shall be governed by the provisions of Rajasthan Solar Energy Policy, 2014. All of the facilities/concessions provided in the policy shall be provided to these Solar Power Producers.
5. The Private Sector Solar Park Developer(s) shall be allowed to create common infrastructure facilities for development of Solar Park(s) viz, creation of power evacuation system development of roads, etc.
6. Development of Solar Parks through Joint Venture Companies (JVCs): The State will promote development of Solar Parks by investing up to 50% equity (including cost of land) in JVCs formed for development of Solar Parks of capacity 500 MW or more as per the guidelines issued by State Government.

Clarity on land allocation a priority :

The policy also carries a clause about land allocation. This clause is not available in any other states’ policy. “abundant availability of land at the cheapest rate and an ‘investor friendly’ policy makes Rajasthan the most preferred state for solar power generation.” Allocation of government land for either solar parks or a solar power project has been streamlined in the policy.

Water supply-related issues addressed :

Water supply is an important issue this policy has specified clear rules on. The plants would be provided with guaranteed water supply from the Indira Gandhi Nahar Project (IGNP) or the nearest water source available for solar thermal project. The Rajasthan government, back in 2011, had directed INGP to set aside water supply (12 cusec for 400 MW of solar thermal) for five solar power companies signed up under National Solar Mission.
The state pollution control board has also classified solar power projects under “green category”. This is a new development stated in the policy and the government has also specified that the comprehensive consent be given by the state pollution control board within 15 days.

Incentives / Facilities available to Solar Power Projects :

1. Grant of incentives available to Industries: Generation of electricity from Solar Power Plant shall be treated as eligible industry under the schemes administered by the Industries Department and incentives available to industrial units under Rajasthan Investment Promotional Scheme shall be available to the Solar Power Projects.

2. Availability of Water for Power Generation: Water resource department will allocate required quantity of water from IGNP canal / the nearest available source for development of Solar Thermal Power Plants subject to the availability of water for power generation. Power Producer will intimate estimated water requirement to RREC along with source of water. After assessment / scrutiny, case of water requirement shall be forwarded to the Water Resource department . The modification ( s) required, if any, in the existing canal system shall be done by the Water Resources Department at the cost of the Power Producer.

3. Clearance from Rajasthan state Pollution Control Board: Rajasthan State Pollution Control Board with a view to encourage Solar Power plant in the state has notified solar power plant of all capacities under Green Category. The State Board will issue comprehensive consent to establish and consent to operate for one project. The State Solar PV Project at Kolayat , Rajasthan State pollution control board will also ensure expeditious disposal of consent applications within 15 days.

4. Banking : Banking will be allowed as per RERC regulations.

                     The policy promotes all the kinds of solar power—grid interactive projects under JNNSM, Renewable Purchase Obligation (RPO), open access, captive use, setting up rooftop solar connected to the grid as well as decentralised distributed generations. Special emphasis has been laid on establishing solar parks by government (Rajasthan Renewable Energy Corporation or RREC), private solar developers and joint venture companies.