RAJASTHAN RENEWABLE ENERGY CORPORATION LIMITED (Rajasthan State Government Undertaking) E-166, Yudhisthir Marg, C-Scheme, Jaipur Phone:

- 0141-2228198, 2221650, 2222941 Fax: 0141-2226028

NOTE ON SOLAR ENERGY POWER PLANTS IN RAJASTHAN 1. Role Rajasthan Renewable Energy Corporation Limited (RREC) Govt. of Rajasthan merged Rajasthan Energy Development Agency (REDA) with the Rajasthan State Power Corporation Ltd. (RSPCL) to constitute a new organization named Rajasthan Renewable Energy Corporation Limited (RREC) on 9th August, 2002. It is the State Nodal Agency for development of energy from renewable energy sources in the State of Rajasthan as well as the State Designated Agency for promoting energy efficiency and energy conservation in the State. To promote generation of non-conventional energy in Rajasthan and to implement the schemes of the Ministry of New & Renewable Energy (MNRE), Government of India as well as of the State Government, RREC has been playing a leading role in development of these sources in the State. 2. Policy Framework for Development of New & Renewable Energy Sources in Rajasthan The Government of Rajasthan has accorded a high priority to setting up power projects based on non conventional energy sources in the State. With a view to promote generation of power from these sources, Government of Rajasthan issued a "Policy for Promoting Generation for Electricity from Non Conventional Energy Sources in Oct. 2004. Keeping in view the requirements from time to time, this Policy has been amended from time to time. The Policy issued by the State of Rajasthan is amongst the most comprehensive policies for promoting the renewable energy sources. Incentives by the State Government under Policy for promoting Generation of Electricity through Non- Conventional Energy Sources, 2004(in brief): i. Exemption from Electricity Duty: - Consumption of electricity generated by Eligible Power 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 COD ii. Grant of incentives available to industries: - Generation of electricity from Non-conventional 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. iii. Single Window Clearance: A State Level Empowered Committee consisting of following will provide single window clearance on proposals received for developing the power plants based on NonConventional Energy Sources: 1. Chief Secretary Chairman 2. Principal Secretary, Revenue, 3. Principal Secretary, Energy 4. CMD, Rajasthan Vidyut Prasaran Nigam 5. CMD, RREC Member Member Member Member Secretary

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Allotment of land on consessional rates: The Government land required for power projects based on nonconventional sources of energy shall be allotted to Power Producer at concessional rates viz, 10% of DLC rates. Provided that; a) the land other than the Government land will be procured by the Power Producer/ developer at his own cost, b) While land may be allotted to the Power Producer for the project, signing of lease agreement by the Collector, shall only be after deposit of the Security Money in RREC for at least 10% of the project capacity for which the land was allotted.

Solar Photovoltaic Power Plants (Grid Interactive) established by RREC: The RREC has established 5 KW Solar Photovoltaic Power Plant on the roof of its office and two Solar Photovoltaic Grid Interactive Power Plants of 25 KW each at new Assembly Building and Government Secretariat, which are working satisfactorily. A 100 KW capacity Grid Interactive Power Plant has been established at Gorir in District Jhunjhunu by RREC to carryout R&D in the area of power electronics and generation of pollution free electricity from Solar Photovoltaic Systems. MNRE has sanctioned about 2/3rd cost of this project as Central Assistance. MW scale Grid Interactive Electricity generation from Solar Energy: 5.1 Necessity of large scale solar energy generation; In view of the rapid depletion of fossil and extremely limited reserves, the cost of generation of electricity from conventional energy sources is increasing sharply while with technological innovations, and the possibility of mass scale solar applications in the field of energy generation, the cost of generation of electricity from solar energy will come down drastically. It is expected that over the course of the next 10 to 15 years, the cost of generation of electricity from solar energy will come down below that of conventional energy. Thus the world is now poised for the next major technological revolution when solar energy becomes cost effective and large scale generation of electricity from solar energy is possible. Large potential of Solar energy in Rajasthan: The State of Rajasthan receives maximum solar radiation intensity in India. In addition the average rainfall is minimum in the State, hence best suited for solar power generation. It also has land available in abundance and extremely cheap. As a result, Rajasthan is likely to emerge as the power house of the country with the possibilities of setting up installed capacity exceeding 100,000 MW. This is, therefore, the stage to tap the potential of the emerging revolution in solar energy, by making investment now in order to gain the experience of generating grid interactive power from solar energy of MW scale and above.

5.

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Private Sector Investment: The State Government has been receiving several proposals from potential investors to set up solar power plant in various locations in the State. So

far, 49 Nos. solar project proposals totaling of 1524.MW have been registered and many more Investors are keen to set up solar power projects in the State. RRECL being the nodal agency in the State to promote renewable energy projects, its role includes facilitation of investment in solar power projects in the State. Installation of 1524MW solar power plants will result in investment of order of Rs 20,000crores by private entrepreneurs. 7. Govt. of India Initiatives: To take a lead in demonstration of solar generation, MNRE New Delhi has recently announced a policy of Generation Based Incentive Scheme for setting up of demonstration projects. However, the limitation of the policy plant capacities of total 50 MW for the country, with ceiling of maximum 10 MW for a State. Under this policy, the Rajasthan state (RREC) has accorded approval to solar power projects each of capacity 5 MW to M/s. Reliance Industries Limited (M/s. RIL) and M/s. Par Solar Limited. On recommendations of RREC both the firms had acquired land and got power evacuation plan approved from Raj. Viduit Prasaran Nigam and submitted project implementation details for approval of MNRE under Generation Based Incentive Scheme. MNRE sanction for incentive tariff is awaited. 8. Govt. of Raj Initiatives to promote Solar Generation In order to promote Solar Generation in Rajasthan, on request of RREC ,the Rajasthan State Regulatory Commission vide its order dated 2.4.2008 has directed RREC to identify technical feasible potential sites for solar power development for which tariff can be determined on cost plus basis or through competitive bidding basis. The Energy Department has also conveyed the approval of the State Government for selection of developer, over and above 50MW capacity, for setting up of Solar Power Plants up to 100MW capacity (50MW Solar Thermal & 50MW Solar photovoltaic) based on competitive bidding in accordance with Government of India guidelines dated 6th January, 06 and deviation as may be approved by RERC. 9. Approvals issued for establishment of solar power plants by Raj. Govt As per RERC directions vide order dated: 2/4/08 the Rajasthan Renewable Energy Corporation Ltd. has initiated the action for selection of developers for setting up of solar power projects in the state, up to capacity 50 MW on under renewable energy obligation, for which tariff is to be determined by RERC on case to case (site, technology and funding specific) basis, from the registered companies who intend to setup such power plants, has been asked for full details. Out of these, 22 companies have furnished their proposal to set up 225 MW capacity power plants. 11 Nos. developers selected for establishing solar power projects and decided in the meeting of SLEC held on dated 2/3/09 for total capacity of 71 MW for distribution among following firms:

S.No. 1. 2. 3. 4. 5. 6.* 7. 8. 9. 10. 11. * 12.

Name of Developer Moser Baer Photovoltaic Ltd. Astonfield Solar (Rajasthan) Pvt. Ltd. Videocon Industries Ltd. Refex Refrigerants Ltd. AES Solar Energy Pvt. Ltd. Zoom Developers Entegra Swiss Park Vanijya OPG Energy Acme Telepower Ltd. Essar Power (Essar Abengoa solar one) Entegra

Capacity allocated (MW) 5 5 5 5 5 5 1 5 5 10 10 10

Technology SPVCPV SPV/CPV SPV/CPV SPV/CPV SPV/CPV SPV/CPV SPV/CPV SPV/CPV SPV/CPV Thermal Thermal Thermal

Out of above two firms (1) M/s. Zoom Developers & (2) M/s. Essar Power Ltd. not deposited Security deposit, so order for installation of power project was withdrawn from them. All the other ten companies have submitted tariff petition to RREC as per requirement and RREC is in process of deciding the tariff for them. 10. Land Banks for Solar power plants It is imperative for RRECL to develop a land-bank so that suitable pieces of land can be allotted to set up new projects RREC has accorded a work order to M/s PDCOR. to identify potential sites to set up solar projects at Jodhpur. They have completed the work and handed over a report after identified 5 nos. CSP project sites of 50MW each, 5 nos. SPV Project sites of 50MW each and 32 nos. SPV project sites of 5 MW. Their after to develop further readily available land bank, RREC has awarded work to M/s. PDCOR for preparing land bank in three districts viz Barmer and Jalore in April. Further work order to M/s. PDCOR for preparing land bank for three more districts viz Nagaur, Hanumangarh, Jaislemer and Bikaner is also in Pipeline. This cost so incurred by RREC will be recovered from such developers who are keen to have land from the above identified land bank and their after allotted them. Competitive bidding for Additional 100MW solar power plants Beside above, as per directions of Regulatory Commission (RERC), the RREC has obtained proposal from M/s. PFC CL for consultancy for (i) selection of Developer for 50 MW Solar Thermal Power Projects and (ii) selection of Developer for 50 MW Solar Photovoltaic Power Projects. But even after negations their consultancy rates were found to be exorbitantly high. In order to expedite the process offer for consultancy has been asked form M/s. PDCOR and decision will be taken shortly.

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Awards outstanding work in the field of Solar Photovoltaic 1. Rajasthan State has recently been awarded the First Prize to Rajasthan (RREC) for their outstanding work in the field of Solar

Photovoltaic (2002-2007) in the country (non-special category States) by the Ministry of New Renewable Energy in Nov. 2007. 2. RREC has received a "IEEMA Power Award-2009" by NDTV Profit for outstanding work in renewable energy.