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GERC Approves Tariff for GUVNL’s 1,000 MW Solar Power Procurement at Competitive Rates

The Gujarat Electricity Regulatory Commission (GERC) has approved Gujarat Urja Vikas Nigam Ltd.’s (GUVNL) petition for tariff approval to procure 1,000 MW of solar power. The capacity includes 500 MW of base allocation and 500 MW under the greenshoe option. The weighted average tariffs ranged from Rs2.55/kWh to Rs2.555/kWh. GERC found the bidding process transparent, aligned with the Electricity Act and Ministry of Power guidelines, and directed GUVNL to sign power purchase agreements (PPAs) within 30 days and submit compliance affidavits.

The competitive bidding saw S.B.B. Mouldings, Kintech Synergy, Enertech Fuel Solutions, Prozeal Green Energy, Ausom Enterprise, Drashta Green Power, and SAEL Industries emerge as winners. SAEL secured the highest allocation of 240 MW (out of a quoted 300 MW) at Rs2.56/kWh, with others securing between 10 MW and 100 MW each at Rs2.55/kWh.

Under the greenshoe option, additional capacities totaling 500 MW were awarded to Kintech, Enertech, Drashta, and SAEL at Rs2.55/kWh.

These projects aim to meet Gujarat’s Renewable Purchase Obligations (RPOs) and support the Kisan Suryodaya Yojana, which provides daytime power to farmers. GUVNL confirmed that all bidders accepted their allocated capacity and tariffs, and affirmed that the bidding conformed to the 2023 power ministry guidelines.

While approving the tariffs, GERC highlighted the importance of transparency and mandated the inclusion of Late Payment Surcharge Rules, 2022, in the PPAs. The Commission also raised concerns over the declared Capacity Utilization Factor (CUF), which was increased from 17% to 22% to improve transmission cost-efficiency. Bidders are allowed to revise CUF within a year of commissioning.

GERC criticized GUVNL for past lapses in documentation and urged better compliance in future filings. The utility was ordered to publish bidder names and tariff details on its website to ensure public transparency.