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Rajasthan Revises Developer Contributions towards REDF

The Rajasthan government has revised the rates for developer contributions towards the Renewable Energy Development Fund (REDF) for solar projects in the Solar Energy Policy 2019.

 

In case of solar projects developed in the state, for sale of power to companies other than discoms of Rajasthan, the developer will have to contribute towards the fund.

 

The Solar Energy Policy 2019 noted that large-scale integration of wind and solar power into the grid requires upgradation of transmission and distribution infrastructure of power utilities, leading to rise in system-level cost.

 

The increased cost has to be borne by state utilities and the government in various forms, mainly as expenditure for development of large power system infrastructure for grid management. In a move to meet the requirement, the government has come out with REDF.

 

Under the Solar Energy Policy 2019, the contribution from developers has been categorised under four brackets with respect to date of commissioning. The contribution has been fixed at Rs two lakh/MW/year for solar projects commissioned by March 2024; it will be Rs 3 lakh/MW/year for projects to be commissioned between April 2024 and March 2025; Rs 4 lakh/MW/year for projects commissioned between April 2025 and March 2026; and Rs 5 lakh/MW/year for projects getting commissioned on or after April 2026.

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