Gujarat Electricity Regulatory Commission (GERC) has approved distribution licensee  MPSEZ Utilities’ (MUL) petition to procure 1,070 MW of ISTS-connected wind-solar hybrid power from Solar Energy Corporation of India (SECI) at a tariff of ₹2.60 ($0.031)/kWh, including a trading margin of ₹0.07 ($0.00085)/kWh for 25 years.

MPSEZ Utilities, a power distribution company supplying electricity to consumers in the Mundra area of the state, had filed a petition seeking approval for the power supply agreement (PSA) executed with SECI.

Background

The petitioner expects a significant increase in demand from existing and upcoming consumers. MUL forecasted demand for the first half of the fiscal year 2023-24. The expected maximum demand is 447 MVA for the first half of 2023-24, and goes up to 701 MVA in the second half.

For the fiscal year 2024-25, the expected maximum demand is 1090 MVA in the first half and 2830 MVA in the year’s second half.

The maximum expected demand for the fiscal year 2025-26 is 2887 MVA in the first half and 2891 MVA in the second half.

Lastly, for the fiscal year 2026-27, the expected maximum demand is 3660 MVA in the first half and 498 MVA in the second half.

SECI issued a tender for setting up 1.2 GW ISTS-connected wind-solar hybrid power projects under Tranche-V, with the petitioner expressing interest in procuring 1,170 MW power through competitive bidding. Following this, SECI offered 1070 MW power to the petitioner.

TP Saurya, AMP Energy Green, and NTPC Renewable will develop the projects.

The petitioner formed a bid evaluation committee, and after considering the competitiveness of the offer made by SECI and the bid process involved, they provided an in-principle approval to procure 1,070 MW of wind-solar hybrid power at ₹2.60 (~$0.032)/ kWh, including SECI’s trade margin of ₹0.07 ($0.00085)/kWh.

The petitioner and SECI executed a power supply agreement. Accordingly, the petitioner has filed the present petition to approve the power procurement of 1070 MW wind-solar hybrid power from SECI at ₹2.53 ($0.031)/kWh discovered through a competitive bidding process along with the trading margin of ₹0.07 ($0.00085)/kWh.

Commission Analysis

The Commission approved the power supply agreement executed with SECI at the discovered tariff of ₹2.53 ($0.031)/kWh along with a trading margin of ₹0.07 ($0.00085)/kWh for 25 years.

Gujarat’s power distribution companies had petitioned GERC to approve a green tariff of ₹9.89 (~$0.12)/kWh in the true-up petition filed for the financial year 2021-22.

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