The Gujarat Electricity Regulatory Commission (GERC) has approved tariffs for 101 solar power projects of Paschim Gujarat Vij Company (PGVCL) with a total capacity of 259 MW under Component C of the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM KUSUM) program.

The tariffs adopted range from ₹2.35 (~$0.028)/kWh to ₹3(~$0.036)/kWh.

Background

PGVCL issued a tender in October 2023 to develop solar projects to solarize agricultural feeders of selected substations of PGVCL.

After the e-reverse auction was completed, PGVCL issued letters of intent (LoI) to 236 bidders in a phased manner for 110 solar power projects as per the bucket-filling mechanism.

Out of the total bids for which LoIs were issued, 109 LoIs for 101 solar projects were accepted.

PGVCL told the Commission that the discovered tariff rates were competitive, with many below the ₹3(~$0.036)/kWh threshold.

It also said the competitive bidding process followed all guidelines the Ministry of New and Renewable Energy (MNRE) laid down and adhered to Section 63 of the Electricity Act.

Commission’s Analysis

The Commission evaluated the stage-wise bid evaluations of the projects and the tariffs after the e-reverse auction.

The regulator was satisfied with the transparent tendering process and approved the discovered/negotiated tariff within the range of ₹2.35 (~$0.028)/kWh and ₹3 (~$0.036)/kWh.

In September, the Commission set a levelized tariff of ₹2.76 (~$0.03)/kWh for solar power projects below 5 MW commissioned between April 1, 2023 and March 31, 2027.

In the same month, the Commission decided to allow amendments to its renewable energy connectivity regulations to transfer connectivity rights in certain cases. The existing regulations prohibit connectivity transfer once granted and require the same entity that obtained connectivity to sign transmission/wheeling agreements.

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