| Work Detail |
The Gujarat Electricity Regulatory Commission convened to address the petition, submitted by the Paschim Gujarat Vij Company Limited (PGVCL). The petition sought approval for the tariff identified through a competitive bidding process under the PM-KUSUM-C Feeder Level Solarization Scheme. This initiative involves implementing 125 solar plants with a combined capacity of 276 MW under the RESCO model, aimed at solarizing 11 kV feeders.
PGVCL representatives outlined that the bidding, conducted as per guidelines issued by the Ministry of Power and the Ministry of New and Renewable Energy (MNRE), adhered to competitive protocols, resulting in tariffs ranging from ?1.89 to ?5.50 per kWh. A ceiling tariff of ?3 per unit was applied, which sparked concerns due to its deviation from the Commission’s earlier tariff determination of ?2.76 per kWh. The company justified this ceiling by highlighting financial assistance of ?1.05 crore per MW available under the scheme and the project’s eligibility for this aid. Further clarifications and documents regarding the justification for the ceiling rate were requested by the Commission.
Key milestones in the tendering process included the e-reverse auction held between July 3 and July 8, 2024, with subsequent issuance of Letters of Intent (LOIs) at rates lower than ?3 per unit for higher quoted bids. The Commission noted that under the PM-KUSUM-C Scheme, project completion is expected within 24 months from the sanction date, with an 18-month timeline from the LOI issuance.
Stakeholder engagement emerged as a critical aspect of the deliberations. The Commission mandated a public hearing process, ensuring transparency and participation. PGVCL was directed to publish public notices in widely circulated newspapers, upload all petition documents online, and invite feedback. Stakeholders were required to submit their objections and suggestions within ten days, a timeline expedited considering the project’s urgency. The Commission will review and incorporate stakeholder inputs before finalizing the order.
The petition also faced scrutiny for its alignment with market trends, as similar competitive bidding by other entities in Gujarat yielded lower tariffs. PGVCL was instructed to provide additional justifications and comprehensive documentation, including bid evaluations and MNRE guideline compliance, to address these concerns.
The hearing concluded with instructions for PGVCL to fulfill the specified documentation requirements and stakeholder consultation processes. A compliance affidavit is to be filed, after which the matter will be revisited. The Commission reaffirmed its commitment to ensuring that the proposed tariff adoption aligns with regulatory standards and stakeholder expectations. |
