GERC Nod For Supply Of Solar Power At Rs 2.55/kw

GERC Nod For Supply Of Solar Power At Rs 2.55/kw

The Gujarat Electricity Regulatory Commission (GERC) has approved solar power tariffs discovered by Gujarat Urja Vikas Nigam Limited (GUVNL) for the procurement of 1,000 megawatts (MW) of electricity through a competitive bidding process.

GUVNL had issued a tender in August 2024 to procure 500 MW of grid-connected solar power, with an option to purchase an additional 500 MW under a Greenshoe provision. The company sought formal adoption of the tariffs under Section 63 of the Electricity Act, 2003.

Twelve bids submitted

Twelve bids were submitted, with 11 found to be technically eligible. The lowest tariff, INR 2.55 per kilowatt-hour, was quoted by six bidders, while SAEL Industries quoted INR 2.56. A reverse auction conducted on October 22 determined the allocation of the base 500 MW capacity.

The base capacity was awarded to seven companies:

• SBB Mouldings Pvt Ltd (10 MW)
• Kintech Synergy Pvt Ltd (50 MW)
• Enertech Fuel Solutions Pvt Ltd (40 MW)
• Prozeal Green Energy Ltd (100 MW)
• Ausom Enterprise Ltd (50 MW)
• Drashta Green Power Ltd (10 MW)
• SAEL Industries Ltd (240 MW at INR 2.56/kWh)

Greenshow Option 

Following the auction, additional capacity was offered under the Greenshoe option at the L1 tariff of INR 2.55/kWh. Enertech accepted an additional 203 MW, bringing its total to 243 MW. SAEL Industries secured another 240 MW, taking its total to 480 MW at a weighted average tariff of INR 2.555.

The final allocations brought the total capacity to 1,000 MW. Letters of Intent were issued on November 11, 2024. Power purchase agreements (PPAs) are to be signed within 30 days of issuance or 15 business days from GERC’s approval, whichever is later.

GERC Approval On Tariffs 

The commission found the bidding process to be transparent and in line with government guidelines. It also directed GUVNL to include provisions from the Electricity (Late Payment Surcharge) Rules, 2022, in the PPAs and to publish details of the tariffs and successful bidders on its website.

GUVNL said the procurement will help meet renewable energy obligations and support the state’s Kisan Suryoday Yojana, aimed at providing daytime solar power for agriculture.