Rajasthan just got more attractive for potential PV plant developers. The RERC has issued an order that transmission charges for inter-state open access solar projects will be decreased by 50%. In January this year, the Rajasthan Solar Association (RSA) had approached RERC on the issue of high transmission charges. Sunil Bansal, general secretary of RSA told the Times of India back then that Rajasthan has high transmission and loss charges, and these have emerged as hurdles for solar PV uptake. The impact of transmission and loss charges were calculated by the RSA as being as high as INR1.46 per kWh (US$0.02/kWh) for power generated in the state.
Now RERC has reacted to RSA’s plea and halved transmission charges for open access solar projects. This move is being seen as one of the key enablers implemented by the government of Rajasthan to achieve the target of 25,000 MW of solar capacity.
According to the Economic Times of India, RSA’s President Suman Kumar stated that this move will "tremendously increase the state’s attractiveness as a potential solar export hub by bringing an investment of about INR175,000 crore ($26 billion) and creating over 75,000 jobs".