The Gujarat Electricity Regulatory Commission (GERC) has approved tariffs between ₹2.15 (~$0.025)/kWh and ₹3 (~$0.034)/kWh for a cumulative 76 MW solar power projects of Madhya Gujarat Vij Company (MGVCL) under Component C of the Pradhan Mantri Kisan Urja Suraksha Evam Uthan Mahabhiyaan (PM KUSUM) program.

The Commission also approved the power purchase agreement (PPA) that will be signed for these tariffs.

Background

The petitioner, MGVCL, floated a tender for solar projects with a cumulative capacity of 134.5 MW under Component C of the Pradhan Mantri Kisan Urja Suraksha Evam Uthan Mahabhiyaan (PM KUSUM) program. The ceiling tariff was ₹3 (~$0.034)//kWh.

After negotiations, 105 bids for 33 solar projects, aggregating to a 76 MW capacity were received for tariffs ranging ₹2.15 (~$0.025)/kWh to ₹3 (~$0.034)/kWh.

The petitioner approached the Commission to approve the discovered tariffs.

Commission’s Analysis

The Commission observed that tariffs were discovered through a competitive bidding process.

It also noted that of the total bids for 95.5 MW, the tariff was lower than ₹3 (~$0.034)/kWh for bids of 72.5 MW, and it was above ₹2.76 (~$0.032)/kWh for bids for 21.5 MW capacity.

However, the Commission observed that the weighted average tariff remained at ₹2.57 (~$0.029)/kWh for the 76 MW capacity.

It approved the negotiated tariffs for 76 MW solar power projects with a ceiling tariff of ₹3 (~$0.034)/kWh and the PPAs to be signed with the selected bidders. After PPAs are executed, MGVCL needs to publicly disclose the name of the successful bidders and the tariff agreed by them for 30 days on its website.

In 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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