The Rajasthan Electricity Regulatory Commission (RERC) has extended the state’s Renewable Energy Tariff Regulations control period by two years, until March 31, 2028, and introduced several amendments related to energy storage systems, green open access, renewable energy banking, payment security, and project performance standards.
The Third Amendment to the RERC Renewable Energy Tariff Regulations, 2026, will come into effect from April 1, 2026. The move is aimed at maintaining regulatory stability for renewable energy developers and investors in Rajasthan while the sector continues to evolve with new technologies and changing market conditions.
Some stakeholders had requested a detailed review of tariff assumptions, citing major changes in renewable energy technology and market dynamics since 2020. However, RERC stated that the current amendment exercise was primarily intended to avoid a regulatory gap. The Commission noted that a complete revision of technical and economic parameters would require a separate set of regulations.
A major focus of the amendment is the inclusion of provisions related to energy storage systems (ESS). RERC has clarified that the minimum rated energy capacity of an ESS will be based on project requirements and decided through mutual agreement between the project developer and the procuring entity. This approach provides greater flexibility for renewable energy projects integrated with storage solutions.
The Commission has also retained the minimum 85% efficiency requirement for solid-state battery-based energy storage systems at the time of commissioning. The efficiency standard has been aligned with the Central Electricity Regulatory Commission’s (CERC) renewable energy tariff framework.
The amended regulations also bring several renewable energy provisions in line with Rajasthan’s Green Energy Open Access Regulations, 2025. Rules related to transmission charges, wheeling charges, cross-subsidy surcharge, additional surcharge, and banking of renewable energy will now be governed through the green open access framework instead of separate provisions under the tariff regulations.
RERC has also revised the methodology for calculating Capacity Utilisation Factor (CUF) and Plant Load Factor (PLF). Instead of using a fixed 8,766-hour calculation basis, the Commission decided that annual CUF and PLF will be calculated using 24 hours multiplied by the number of days in the respective financial year. The regulator said this approach would provide more accurate calculations for both leap years and non-leap years.
On payment security, RERC has aligned its regulations with the Ministry of Power’s Electricity (Late Payment Surcharge and Related Matters) Rules, 2022. Renewable energy generators will be allowed to claim late payment surcharge on delayed payments beyond 45 days, improving payment discipline and supporting better cash flow for developers.
However, the Commission rejected a proposal to reduce the normative gross calorific value (GCV) for biomass fuel from 3,400 kcal/kg to 3,100 kcal/kg. RERC said Rajasthan’s biomass projects largely use fuels such as mustard husk and agricultural residues with higher calorific value, making the existing benchmark more suitable for the state.
The Commission also clarified that certain proposals, including changes related to solar plant installation dates, project life extension, and COVID-19 as a force majeure event, were outside the scope of the amendment and were not considered.
The updated framework is expected to provide greater clarity for renewable energy projects while supporting Rajasthan’s continued expansion of clean energy capacity.
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