GERC Clears Tariffs for 76 MW Feeder-Level Solar Projects in Gujarat under PM-KUSUM

The Gujarat Electricity Regulatory Commission (GERC) has approved the adoption of tariffs discovered through a competitive bidding process conducted by Madhya Gujarat Vij Company Ltd. (MGVCL) for solar projects under the Pradhan Mantri KUSUM Yojana - Component C (Feeder Level Solarisation, or FLS).

The approval follows a petition filed by MGVCL. The petition sought the adoption of tariffs discovered through a tariff-based competitive bidding process conducted via Request for Selection dated January 3, 2024. This bidding process was aimed at selecting developers for 33 solar power plants with a cumulative capacity of 76 MW under the RESCO model for solarisation of various 11 kV agricultural feeders within MGVCL's operational area under the Feeder Level Solarisation (FLS) component of the PM-KUSUM-C scheme.

The Commission reviewed the discovered tariffs and accepted MGVCL’s justifications, noting the transparent and competitive nature of the bidding. Approved tariffs ranged between INR 2.15/kWh and INR 3.00/kWh, reflecting effective price discovery and broad developer participation.

Sahaj Solar Ltd. emerged as a key winner, securing eight solar projects totalling 19.5 MW with quoted tariffs between INR 2.61/kWh and INR 3.00/kWh. Onix-Tech Renewable (India) LLP followed closely with seven projects amounting to 21 MW, quoting tariffs as low as INR 2.32/kWh.

Other participants included PNV Energy Private Ltd.(7.5 MW), Pioneer Security Solution Pvt. Ltd. (11 MW), and Mecpower Solutions Pvt. Ltd. (4 MW), among others. While several smaller developers quoted near the INR 3.00/kWh ceiling, bids from larger developers helped lower the average discovered tariff.

GERC has granted MGVCL the permission to sign Power Purchase Agreements (PPAs) with all successful bidders at the accepted tariffs. In accordance with Clause 10.3 of the amended bidding guidelines, MGVCL has also been directed to publish the list of successful bidders, tariff details, and component-wise breakups on its website for at least 30 days to maintain transparency in public procurement.

"We also direct the petitioner that for the purpose of transparency, after execution of the PPA, publicly disclose the name of the successful bidder(s) and the tariff quoted/negotiated and agreed by them together with the breakup of the component for 30 days on its website in terms of Clause 10.3 of the 129 bidding guidelines as amended for the knowledge and information of the stakeholders," said the Commission.

These FLS projects under PM-KUSUM-C are designed to solarise agricultural feeders at the distribution level, thereby ensuring reliable daytime power supply for farmers, reducing DISCOMs’ subsidy burdens, and promoting decentralised renewable energy generation. The Commission’s decision marks a significant step toward scaling rural solar infrastructure and supporting India's clean energy transition goals.