| Work Detail |
The Gujarat Electricity Regulatory Commission (GERC) held a hearing regarding a petition filed by Gujarat Urja Vikas Nigam Limited (GUVNL) and other DISCOMs. This petition sought approval for the mechanism of applicable tariffs for the purchase of power from solar and wind projects under the Gujarat Renewable Energy Policy-2023.
The petition outlined GUVNL’s request for approval of a tariff mechanism for purchasing power from solar projects with a capacity between 0.5 MW to 4.0 MW and wind projects with a capacity between 0.5 MW to 10 MW. GUVNL highlighted that the procurement of renewable energy, including solar power, is conducted on a competitive bidding basis, in line with guidelines issued by the Ministry of Power. However, these guidelines specify that for intra-state projects below 10 MW, competitive bidding is not mandatory.
GUVNL proposed a mechanism where tariffs for these smaller projects would be determined based on the average tariffs discovered through competitive bidding for larger projects. This average would then be adjusted by adding 20 paisa per unit. The resulting tariff would apply to PPAs signed in the following six months and remain fixed for 25 years. GUVNL also mentioned that if a lower generic tariff is determined by GERC for these projects, that lower tariff would prevail.
During the hearing, GUVNL informed the Commission that a draft Standard Operating Procedure (SOP) had been prepared for the purchase of power from these smaller projects. This SOP had been published on the GUVNL website, and stakeholders were invited to submit their comments and suggestions within 10 days. The Commission was also informed that a similar mechanism had previously been approved for solar projects with capacities between 0.5 MW to 4.0 MW under a different policy.
The Commission took note of the submissions and acknowledged that the petition involves the approval of tariffs and the terms of PPAs for small solar and wind projects. Given the significance of the matter, the Commission decided that a public hearing would be necessary to gather input from stakeholders. GUVNL was directed to issue a public notice in newspapers and on its website, inviting comments, suggestions, and objections from stakeholders. These submissions are to be filed with the GERC within 30 days of the public notice.
The Commission also instructed its staff to upload the petition and relevant documents on the GERC website once the public notice is issued. Additionally, any suggestions or objections received would be shared with GUVNL, which is required to respond to these submissions within 15 days.
The next date for the hearing will be communicated separately. The Commission concluded the order with directions to proceed accordingly. This decision by the GERC highlights the regulatory process involved in determining tariffs for renewable energy projects in Gujarat, ensuring transparency, stakeholder involvement, and adherence to state policies aimed at promoting sustainable energy. |
