GUVNL Notices Stakeholders About Surplus Energy Compensation at Rs 1.99/unit

Gujarat Ujrja Vikas Nigam Ltd. (GUVNL), a wholly-owned state electricity regulation board in the state of Gujarat has recently declared that the simple average of solar tariffs discovered and contracted through competitive bidding process conducted by GUVNL for non-park based solar projects during the period from October 1st, 2020 to March 31, 2021, is Rs 1.99 / unit.

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Accordingly, as per the provisions of Gujarat Solar Policy 2021, the above rate of Rs. 1,99/unit shall be paid by DISCOMs (distribution companies) as a rate of Surplus Injection Compensation (SIC) for surplus solar energy injected into the grid. This compensation rate is for relevant solar projects commissioned or to be commissioned during the period from April 1st, 2021 to September 30, 2021.

According to the Gujarat Solar Policy 2021 notified by State Government on December 29, 2020, the surplus solar energy generated from projects for captive use and third party sale, is expected to be compensated by DISCOMs at a rate linked to “simple average of tariffs discovered and contracted through competitive bidding process conducted by GUVNL for non-park based solar projects in the preceding 6-month period, i.e. either April to September or October to March as the case may be, from the Commercial Operation Date (CoD) of the project. The same shall remain fixed for the entire term of the agreement”.

This Solar Policy 2021 by the Gujarat government will remain valid till December 31, 2025. It came with several incentives for residential, commercial, and industrial rooftop solar developers, and it says that the surplus energy after being set forth on a 15-minute time block basis will be compensated by the DISCOM at 65 percent of the tariff discovered by GUVNL in case of captive projects or third-party sale under the renewable energy certificate (REC) mechanism.

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Recently last month, GUVNL auctioned for 100 MW solar projects to be developed in the Raghanesda Solar Park and SJVN Limited won the project capacity at a tariff of Rs 2.64/kWh.

Earlier in April 2021, Coal India Limited (CIL) announced that it has signed its very first Power Purchase Agreement (PPA) for the sale of 100 MW of solar power to GUVNL.