Follow India Renewable Energy News on WhatsApp for exclusive updates on clean energy news and insights

Gujarat Approves Rs3/kWh Tariff for 3 MW Solar Projects under PM-KUSUM Program

The Gujarat Electricity Regulatory Commission (GERC) has approved a uniform tariff of Rs3)/kWh for three 1 MW solar power projects developed by Madhya Gujarat Vij Company Limited (MGVCL) under Component C of the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM) program. These projects are located in Fagvel, Reliya, and Taiyabpura, Gujarat.

In an effort to promote the solarization of agricultural feeders, MGVCL initiated a competitive bidding process on March 21, 2023. The initial bids ranged from Rs3.69 to 3.99 /kWh. However, following recommendations from Gujarat Urja Vikas Nigam Limited (GUVNL), a uniform tariff of Rs3/kWh was negotiated with the bidders. Letters of award were issued after the bidders agreed to the negotiated tariff.

The GERC approved the tariff after reviewing the petition and confirming that the bidding process was conducted transparently and in compliance with legal requirements. The Commission recognized the Rs3/kWh tariff as competitive and beneficial for both consumers and utilities.The Commission also approved a 25-year power purchase agreement (PPA) for the three solar projects.