Gujarat Invites Application for Setting Up Small-Scale Solar Projects

The Gujarat Urja Vikas Nigam Limited (GUVNL) has invited applications for setting up small-scale solar projects ranging between 0.5 MW and 4 MW.

The tender is open for individuals, companies, associations, and co-operative societies.

Successful applicants will sign a power purchase agreement (PPA) with GUVNL under Gujarat’s Policy for Development of Small-Scale Distributed Solar Projects -2019.

The small-scale solar developer would be eligible for an additional ₹0.20 (~$0.0027)/kWh above the average tariff discovered by GUVNL during competitive bidding for large-scale solar projects, which is ₹2.63 (~$0.036)/kWh. So, the applicable tariff for the PPAs signed from October 2020 to March 2021 will be ₹2.83 (~$0.04)/kWh.


The applicant must apply to the corporate office of local DISCOM within two months. The DISCOM will grant the connectivity to the applicants on a first-come, first-serve basis. The projects need to be commissioned within a year from the date of signing of the PPA. The tariff mentioned in the PPA is for 25 years from the commercial operation date of the project.

Last year, the state announced a policy to develop to encourage the development of small-scale solar PV projects with sizes ranging between 0.5 and 4 MW. The aim was for setting up of solar PV projects in scattered pockets of barren and uncultivable lands. “The policy will provide visibility to small developers in terms of available tariffs for the sale of power and help promote small-scale entrepreneurs,” a state official had then told Mercom. The policy would be in force for five years.

Mercom India Research has so far tracked 386 tenders issued by various agencies in India amounting to 578.19 MW, which are in the range of 500 kW to 4 MW.

The Gujarat government has announced several measures to encourage the adoption of clean energy projects in the state.

In September last year, the Gujarat government relaxed the state’s solar policy to allow micro, small, and medium enterprises to install solar projects that are more than 100% of their sanctioned load or contract demand. Before the announcement, the Gujarat Solar Policy allowed commercial and industrial clients to install only 50% of their sanctioned load.

The state government also modified its land laws relating to the development of wind and hybrid (wind and solar) parks in the state.

Image credit: Encyclopaedia Britannica