Gujarat Integrated RE Policy Targets 300 GW by 2047 Through Hybrid & Storage Projects

Gujarat has recently issued an integrated renewable energy policy, building on the 2021–2023 policy, to include a fully integrated solar, wind, and hybrid framework, thereby forming a comprehensive renewable energy policy. The policy not only assimilates both solar and wind energy on a single platform but also brings clarity on hybrid and energy storage projects.

Gujarat aims to achieve installed renewable energy of more than 150 GW by 2035. Moreover it aims to install Renewable Energy capacity of 300 GW by 2047, and establish Gujarat as a frontrunner in the global clean energy landscape.

#1 Hybridisation

Under the revised policy, the government has allowed the hybridisation of existing wind power or solar power projects. The new policy enables renewable energy (RE) developers willing to install solar PV plants or wind turbine generators, respectively, at existing project locations. Developers can avail benefits under this policy, subject to specified conditions.

Additionally, the state also aims to promote and encourage emerging solutions by notifying separate policies for offshore wind energy, pumped storage projects, green hydrogen, bio-energy, among others.

#2 Re-energising, Repowering, and Life Extension of Wind Projects

Gujarat renewable energy policy with an eye on re-energising old, small-sized, and inefficient wind turbines and replacing them with larger and more efficient wind turbines aims to incorporate improved technologies. The policy envisions to bring trechnology—such as increased rotor diameters, larger blades, taller towers and pole lengths, and higher hub heights. The policy aims to bring repowering of wind turbine generators out by RE developers on or before the completion of 25 years from the date of commissioning of the project or the extended term of the agreement.

Annual energy generation of repowered or refurbished wind projects would be enhanced by at least 1.5 times compared to the average actual generation during the last three years prior to repowering or refurbishment, in line with the National Repowering and Life Extension Policy for Wind Power Projects – 2023.

To facilitate optimised land use and incentivise investment in modern high-capacity turbines, the policy supports micro-siting norms applicable to wind turbine generators (currently prescribed as 5D × 7D). These norms may be relaxed to 3D × 5D for repowering projects.

The policy aims to carry such relaxation on a case-by-case basis, subject to detailed site-specific feasibility analysis and approval by the State Nodal Agency. Existing PPAs on similar terms and conditions would be extended for the actual period of repowering or refurbishment, or two years, excluding Force Majeure events, whichever is less.

#3 Purchase from Solar Power Projects

The policy also allows DISCOMs to procure power from distributed solar projects of up to 4 MW capacity at a pre-fixed levelised tariff, as per the mechanism decided by the Gujarat Electricity Regulatory Commission (GERC).

This tariff can be the simple average of tariffs discovered and contracted under the competitive bidding process conducted by GUVNL for solar projects in the preceding six-month period—either April to September or October to March, as applicable—plus 20 paise per unit. This tariff can apply for signing PPAs in the subsequent six-month period and can remain fixed for the 25-year term of the PPA.

#4 Purchase from Wind Power Projects

For wind projects, DISCOMs said it would procure power from small-sized wind power projects of up to 10 MW capacity (including additional capacity due to repowering or refurbishment) at a pre-fixed levelised tariff. This equal to the simple average of tariffs discovered and contracted under the competitive bidding process conducted by GUVNL for wind projects in the preceding six-month period—either April to September or October to March, as applicable. 

This tariff would apply for signing PPAs in the subsequent six-month period and shall remain fixed for the 25-year term of the PPA. Further, in cases where a generic tariff is determined by GERC for wind projects, the same can be applicable for the purchase of wind power from such projects and would remain fixed for the entire term of the PPA.

#5 Evacuation and Security Deposit Requirements

In cases where RE or battery energy storage system (BESS) projects are set up for captive use or third-party sale, the project developer can submit a bank guarantee towards the security deposit to the STU or DISCOMs, as applicable, in accordance with the connectivity procedure approved by GERC, to ensure the timely completion of the evacuation facility for the RE or BESS project.

The RE or BESS developer can commission the entire evacuation line, along with bays and the metering system, within the stipulated time period. An additional period of up to six months may be granted if the developer fails to commission the evacuation infrastructure within the prescribed timeline.