The Gujarat Electricity Regulatory Commission (GERC) has approved tariffs between ₹2.12 (~$0.024)/kWh and ₹3 (~$0.034)/kWh for Uttar Gujarat Vij Company’s (UGVCL) 154 MW solar power projects under Component C of the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM) program.

The Commission also allowed UGVCL to sign the power purchase agreements (PPA) at the approved tariffs.

Background

The petitioner, UGVCL, invited bids for setting up 170.5 MW solar projects under Component C of the PM-KUSUM program. The ceiling tariff was ₹3 (~$0.034)/kWh.

After negotiations, 86 bids aggregating to 154 MW were received for tariffs ranging from ₹2.12 (~$0.024)/kWh to ₹3 (~$0.034)/kWh.

The petitioner approached the Commission to approve the negotiated tariffs.

Commission’s Analysis

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

It also noted that of the bids received for an aggregate 160.5 MW capacity, bids for 139 MW quoted tariffs less than ₹3 (~$0.034)/kWh. Tariffs for nearly 21.5 MW capacity were quoted above the ceiling limit. However, the overall weighted average tariff quoted remained at ₹2.45 (~$0.028)/kWh for the 154 MW capacity, which the bidders accepted.

The Commission approved the tariff of ₹2.12 (~$0.024)/kWh and ₹3 (~$0.034)/kWh, with a ceiling limit of ₹3 (~$0.034)/kWh. It also allowed the petitioner to sign PPAs with the selected bidders.

The petitioner was also directed to publicize the names of the selected bidders with whom it will sign the PPAs. The names will stay on its website for 30 days.

In 2024, GERC approved tariffs for 101 Paschim Gujarat Vij Company solar projects with a total capacity of 259 MW under Component C of the KUSUM program.

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