Gujarat Allows Discoms to Fulfill RPO by Purchasing Power From Small Solar Projects

Gujarat Electricity Regulatory Commission has granted permission to state Discoms to procure power from small solar projects to meet their RPO

The Gujarat Electricity Regulatory Commission (GERC) has in its latest order granted permission to the Gujarat Urja Vikas Nigam Limited (GUVNL) and the other state Discoms to procure power from small solar projects of capacity up to 4 MW to meet their renewable purchase obligations (RPO).

GUVNL, Madhya Gujarat Vij Company Limited, Uttar Gujarat Vij Company Limited, Paschim Gujarat Vij Company Limited, and Dakshin Gujarat Vij Company Limited had petitioned the commission seeking approval of the mechanism of applicable tariff for the purchase of power under the state’s policy for Development of Small Scale Distributed Solar Projects. 

The Discoms had in their petition requested the commission that the state policy provides for the procurement of solar energy from small solar PV projects by Discoms to meet RPO.

In its findings the commission observed, “The procurement of power by the Discom from small distributed generators of capacity 0.5 MW to 4 MW under the Policy for Development of Small Scale Distributed Solar Projects 2019 is an optional program where the generator and the DISCOMs are eligible to sell or purchase the energy if they wish to.”

“The program is for the promotion of distributed solar energy generation in the state by providing small generators with an option to set up the solar PV project and sell the energy to the Discoms at a rate which is comparatively higher than the rate discovered under the competitive bidding process.”

In its final order, the commission stressed on the point that it is an option given to the small solar generators who desire to sell the energy at the tariff discovered under competitive bidding process plus Rs 0.20 per kWh (additional). However, it will not be compulsory for the generators to accept the tariff if it is not economically viable for them.

The commission has also ordered the petitioners to state on their websites the applicable tariff on which they will buy the energy generated from small scale distributed solar projects of capacity between 0.5 MW and 4 MW. The rate will be updated every six months.

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