The Gujarat Electricity Regulatory Commission (GERC) has adopted a uniform tariff for Madhya Gujarat Vij Company Limited’s (MGVCL) three solar power projects developed under Component C of the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM) program.

A tariff of ₹3 (~$0.036)/kWh was approved for the projects, each with a capacity of 1 MW located at Fagvel, Reliya, and Taiyabpura, Gujarat.

Background

To comply with its Renewable Purchase Obligations (RPO) and facilitate the solarization of feeders, petitioner MGVCL initiated a competitive bidding process by issuing a request for selection on March 21, 2023, for the three projects.

Although the initial tariffs quoted by bidders ranged from ₹3.69 (~$0.043)/kWh to ₹3.99 (~$0.046)/kWh, MGVCL, following recommendations from Gujarat Urja Vikas Nigam Limited (GUVNL), negotiated a uniform tariff of ₹3 (~$0.036)/kWh.

This initiative aims to solarize agricultural feeders, reduce dependency on conventional power, and ensure a reliable power supply to farmers. Letters of award were issued after bidders accepted the reduced tariff.

Commission’s Analysis

The Commission approved the petition after determining that the bidding process adhered to legal requirements and was conducted transparently.

It recognized that the final negotiated tariff of ₹3 (~$0.036)/kWh was competitive and would benefit both consumers and utilities.

The Commission emphasized the importance of fulfilling Renewable Purchase Obligations and the significance of the PM-KUSUM program in advancing Gujarat’s renewable energy objectives.

The Commission also approved the draft power purchase agreement for 25 years. It observed that adopting this tariff would enable MGVCL to meet its renewable energy targets and stabilize agricultural power supply costs.

In November 2024, GERC approved tariffs for 101 solar power projects of Paschim Gujarat Vij Company with a total capacity of 259 MW under Component C of the PM-KUSUM program.

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