Gujarat Releases Draft Renewable Energy Policy-2023 with Focus on Wind-Solar Hybrid Technologies

Gujarat Notifies Renewable Energy Policy-2023 with Focus on Wind-Solar Hybrid Technologies

The Government of Gujarat has notified the Renewable Energy Policy-2023 for further encouraging setting up of renewable generation projects based on wind, solar and wind-solar hybrid technologies. The policy will come into effect from the date of notification and shall remain in operation up to June 2028 or till notification of the new policy, whichever is earlier.

Goal

The Renewable Energy Policy 2023 is formulated for providing the simplified framework for ease of developing renewable projects in the State by attracting investments in renewable sector. The policy aims to facilitate development of 100 GW of cumulative renewable energy capacity by 2030 with investments of around Rs 5 lakh crores by utilizing approximately 4,00,000 acres of land.

The focus of Government of Gujarat is to now leverage the State’s potential of 36 GW of solar capacity and 143 GW wind capacity for augmenting renewable capacity.

The State aspires to achieve the target of 100 GW of renewable capacity in the State by the year 2030.

The Policy sets sights on supplying day time power to agricultural consumers while also reducing the cost of energy basket in the state. The Policy also eyes the promoting investment, employment and skill enhancement and local manufacturing, start-ups, etc. in the RE sector and encourage research and development and deployment of innovative technologies, pilot projects, etc. in the sector.

Eligibility for Benefits

Renewable energy projects that are installed and commissioned during the operative period will be eligible for the benefits and incentives outlined in the policy. These benefits will be applicable for a period of 25 years from the date of commissioning or the lifespan of the RE project, as defined by GERC/MoP/MNRE, whichever is earlier. All ground mounted solar, roof top solar, floating solar, canal top solar, wind, rooftop wind and wind-solar hybrid projects shall be covered under the policy.

The RE projects can be set up under this policy for captive use and / or for selling electricity to any other third party whether registered under the REC mechanism or not, or selling electricity to distribution licensees, subject to the provisions of this Policy and in accordance with the provisions of the Electricity
Act 2003, as amended from time to time.

Further, the policy indicates that there shall be no capacity restriction for setting up of RE projects for captive use or for selling electricity to third party consumer with respect to the consumer’s contracted demand/ sanctioned load (kW/kVA/MVA) with DISCOMs. The AC capacity of the RE project shall be considered as the project installed capacity.

Ground Mount Solar

Solar projects can be setup in a solar park, or outside the solar park, on government revenue land, or on private land. Government land or land available with the State Nodal Agency shall be made available to the RE developers.

Rooftop Solar

Solar projects can be installed by consumers on rooftops or within premises under a net metering arrangement or under a gross metering arrangement, as per applicable GERC regulation from time to time. Incentives under existing central / state government schemes, as the case may be, can be availed by consumers as per the provisions of the respective scheme.

For projects set up under gross metering arrangement and selling power to distribution licensees, the applicable tariff will be equal to the simple average of the tariff discovered and contracted under the competitive bidding process conducted by GUVNL in the preceding 6 months, i.e., either April to September or October to March, as the case may be, plus 20 paisa /unit, which shall be applicable for signing of PPAs in the subsequent 6-month period and such tariff shall remain fixed for the 25 year term of the PPA.

Floating/Canal-Based Solar

The state has several water reservoirs and canals that can be utilized for setting up floating/canal- based solar projects. Such projects avoid the requirement for land and also reduce evaporation in water bodies.

As per the Policy, floating or canal-based solar projects are to be implemented in consultation with Narmada, Water Resources, Water Supply, Kalpsar Department, or such other government authority having control over canals, rivers, streams, etc. Such a Government Authority shall identify potential suitable sites or locations for setting up the project.

Wind Projects

Small scale wind projects can be installed by consumers on rooftops or within premises under a net metering arrangement to offset their own consumption or under a gross metering arrangement and sell the entire generation to DISCOM, as per the applicable regulations of GERC. The RE developer may avail incentives / benefits under the Central or State Government Scheme, as available.

Wind–Solar Hybrid

Wind-solar hybrid power generation plants are divided into two categories:

Type-A Projects: This category includes the conversion of existing or underconstruction standalone wind or solar power plants into hybrid projects. Wind or solar capacity under construction shall be considered based on the registration certificate issued by GEDA or evacuation permission granted by GETCO / STU to the solar or wind RE developers as the case may be, before the issuance of this policy.

The installed wind or solar capacity shall be considered based capacity of power purchase agreement (PPA) or wheeling agreement.

Hybridization of Type A projects: Existing wind power or solar power RE developers willing to install solar PV plants or wind turbine generators, respectively, at the existing location to avail benefits under this policy shall be allowed to do so with conditions as indicated by the policy.

Type-B Projects: This includes new wind-solar hybrid power generation projects that are not registered with GEDA or for which evacuation permission has not been granted by GETCO/ STU until the date of issuance of this policy.

Renewable Energy Parks

Park Size: The minimum capacity of RE park shall be 50 MW, and the maximum park capacity shall be in accordance with the guidelines or schemes of MNRE as issued from time to time.
The minimum capacity of RE park shall be 50 MW, and the maximum park capacity shall be according to MNRE guidelines.

Under REC Mechanism

RE projects may be setup under the REC mechanism for captive use or third party sale in accordance with the CERC regulations.

Energy Settlement and Banking
Energy accounting and banking for all renewable energy projects, including rooftop projects, shall be as per the regulations framed by GERC from time to time in accordance with the Green Energy Open Access Rules 2022 notified by Gujarat Renewable Energy Policy-2023.

Significantly, no banking charges shall be applicable on solar power consumed by residential
consumers with Solar rooftop capacity up to 3.5KW.

DISCOMs may procure power from distributed solar projects up to 4 MW capacity and small size wind projects up to 25 MW capacity at a pre-fixed levelized tariff as per the mechanism decided by GERC.

In case of hybrid projects set up for captive use or third party sale, the RE developer/consumer shall be required to seek sanction / allocation of transmission capacity at least for the installed capacity of the wind or solar capacity, whichever is higher.

For RE projects exempted from competitive bidding process as per MNRE guidelines:
Purchase from solar power projects: DISCOMs may procure power from distributed solar projects up to 4 MW capacity at a pre-fixed levelized tariff as per the mechanism decided by GERC, that is, simple average of tariffs discovered and contracted under the competitive bidding process conducted by GUVNL for solar projects in the preceding 6-month period, that is, either April to September or October to March, as the case may be, plus 20 paisa/unit, which shall be applicable for the signing of PPAs in
subsequent 6-month period and such tariff shall remain fixed for the 25 year term of the PPA.

Purchase from wind power projects: DISCOMs may procure power from small size wind power projects up to 25 MW capacity at a pre-fixed levelized tariff equal to the simple average of tariff
discovered and contracted under the competitive bidding process conducted by GUVNL for wind projects in the preceding 6-month period, i.e., either April to September or October to March, as the case may be, which shall be applicable for the signing of PPAs in subsequent 6-month period and such tariff
shall remain fixed for the 25 year term of the PPA.

Green Tariff
DISCOM shall supply 100% renewable energy upon requisition for RE power made by such
Gujarat Renewable Energy Policy-2023 at a Green Power Supply Tariff, as determined by GERC from time to time.

The RE developers shall also have to install Remote Terminal Unit (RTU) at the RE project for transferring the real time data to concerned Load Dispatch Centre for monitoring purpose.

Prototype Projects
Considering the benefits of technological advancements in wind turbines in respect of higher hub heights, higher capacity etc., the policy aims to facilitate WTG manufacturers and RE developers to install prototype WTGs.

Installation of prototype WTGs shall be permissible to carry out type-testing for a type-certificate from internationally accredited certifying agencies in accordance with the guidelines and procedures for installation of prototype wind turbine models notified by MNRE from time to time.

Repowering of Wind Projects

With an objective to re-energize the old, small-sized and inefficient wind turbines and replace with bigger and more efficient wind turbines with better technology (improved rotor diameters, larger blades, taller towers and pole lengths, increased hub heights, etc.) so as to optimally utilize the existing land and infrastructure, the repowering of wind turbine generators shall have to be done by the RE developers on or before the completion of 25 years from the date of commissioning of the project or extended term of the agreement.

If the wind project developer fails to repower its wind turbine generator at the expiry of the project’s life/ term of agreement / extended terms of agreement, as the case may be, such RE developer shall have to decommission the wind power project and surrender the connectivity, and if the WTG is set up on
leased land, they shall also have to surrender their leasehold rights to Government.

Sharing of Carbon Credit Benefits
30.1 RE projects are eligible for Carbon credits which include CERs, VERs, Gold Standards, or any other standards adopted at the national or international level for the issuance of carbon credits for renewable energy projects.

For all the projects installed through the competitive bidding process, carbon credits can be availed of and retained by the RE developer.

Rooftop solar/wind projects that are implemented under the scheme of the central or state government, as the case may be, shall have to pass the benefit of carbon credits to the DISCOM.