The Gujarat Electricity Regulatory Commission (GERC) has approved a petition filed by Paschim Gujarat Vij Company (PGVCL) to adopt tariffs for 276 MW of solar power projects under Component C of the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM) program.

The approved tariffs range from ₹2.13 (~$0.026)/kWh to ₹3 (~$0.036)/kWh.

Background

The petitioner, PGVCL, approached GERC to approve tariffs ranging from ₹2.13 (~$0.026) to ₹3 (~$0.036)/kWh for its 276 MW solar projects under Component C of the PM-KUSUM program to support 45,800 pumps under 11 kV agricultural feeders. PGVCL had received 129 bids for 125 solar projects to be contracted for 25 years under RESCO model.

It submitted that the tariffs were discovered through a transparent and competitive bidding process.

The petitioner contended that the tariff adoption was necessary to implement the solar projects.  It also presented the bidding process details noting that the discovered tariffs were reasonable and aligned with prevailing market rates.

One of the selected bidders, Gensol Engineering, requested to sign the power purchase agreement (PPA) under ‘Gensol SPV.’ The petitioner denied this request, causing Gensol Engineering to contend this move.

Commission’s Analysis

GERC observed that the petitioner’s bidding process was competitive and transparent.

The Commission concluded that the discovered tariffs were reasonable and aligned with the prevailing market rates and the objectives of the PM-KUSUM program.

It approved the requested tariff of ₹2.13 (~$0.026)/kWh to ₹3 (~$0.036)/kWh, allowing PGVCL to sign the PPAs with the successful bidders except for Gensol Engineering.

The petitioner was also directed to disclose the successful bidders’ names and tariff details publicly. These details will be posted on the petitioner’s website for 30 days.

The Commission listed Gensol Engineering’s request for further hearing.

Earlier this year, GERC adopted a uniform tariff for Madhya Gujarat Vij Company’s three solar power projects developed under Component C of the PM-KUSUM program.

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

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