GUVNL Secures Approval for Solar Power Tariff in Gujarat

The Gujarat Electricity Regulatory Commission (GERC) has approved the tariff for 500 MW of solar power, with a greenshoe option for an additional 500 MW, totaling 1,000 MW of grid-connected solar power projects.

This decision comes after the petition submitted by GUVNL under Section 63 of the Electricity Act, 2003, seeking the adoption of the tariff discovered through a bidding process for solar photovoltaic power projects.

The bidding process was part of the 500 MW grid-connected solar photovoltaic power projects under the RfS dated August 20, 2024, which followed a competitive bidding procedure, including an e-reverse auction. The projects are to be set up or are already under construction and include a greenshoe option, offering additional capacity of up to 500 MW without the incorporation of energy storage systems.

The adopted tariff of INR 2.55 per kWh applies to all successful bidders across the country, including companies like S.B.B. Mouldings Pvt. Ltd., which secured 10 MW, and SAEL Industries Ltd., which won the largest capacity of 480 MW. Other successful bidders include Kintech Synergy Pvt. Ltd., Enertech Fuel Solutions Pvt. Ltd., and Prozeal Green Energy Ltd., with their allocations ranging from 50 MW to 243 MW.

The petition, filed by GUVNL, emphasised the need to adopt the tariff as per the guidelines set by the Ministry of Power and the provisions outlined in the Tariff Based Competitive Bidding Guidelines (2023). It also sought approval for certain deviations from these guidelines, which were approved by the State Government of Gujarat in September 2023.

As part of the ruling, GERC directed GUVNL to sign the Power Purchase Agreements (PPAs) with the successful bidders and submit copies of the executed PPAs to the Commission, ensuring compliance with the bidding guidelines. Transparency is also a critical aspect of the order, as GUVNL is required to disclose the names of the successful bidders and their quoted tariffs for public information on its website for a period of 30 days.

The successful implementation of these projects will add 1,000 MW to the national grid, contributing to India’s ambitious renewable energy goals.