The Gujarat Electricity Regulatory Commission (GERC) has approved Dakshin Gujarat Vij Company’s (DGVCL) petition to adopt tariffs ranging from ₹2.28 (~0.026)/kWh to ₹3 (~$0.35)/kWh for 160 MW solar projects under Component C of the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM) program.

Background

In March 2024, the petitioner, DGVCL, issued a request for selection for developing solar projects with a cumulative capacity of 160 MW for solarizing 11 kV feeders.

After completing the bidding process and the e-reverse auction, the petitioner issued letters of intent to 65 bidders at a tariff ranging between ₹2.28 (~0.026)/kWh and ₹3 (~$0.35)/kWh.

The petitioner approached the Commission to approve the agreed-upon tariffs and the draft power purchase agreements (PPAs).

The initial hearing took place in December 2024.

The Commission directed DGVCL to conduct a public hearing to gather information, to which the petitioner obliged.

The petitioner submitted that its bidding process was transparent and competitive. It also shared a certificate detailing the tender’s bid evaluation.

Additionally, the petitioner contended that the tariff approval was necessary to meet its renewable purchase obligations (RPOs).

Commission’s Analysis

The Commission observed that the petitioner’s bidding process was transparent, competitive, and followed government guidelines.

It also acknowledged the need for distribution companies to meet their RPOs.

The Commission approved the tariff range of ₹2.28 (~0.026)/kWh and ₹3 (~$0.35)/kWh. It also directed the petitioner to publicize the names of the selected bidders and their quoted/negotiated tariffs after signing the PPAs.

Recently, GERC Gujarat Urja Vikas Nigam’s petition to adopt a tariff of ₹372,978 (~$4,350.36)/MW/Month to procure 250 MW/ 500 MWh storage capacity from standalone battery energy storage systems.

GERC also approved a petition filed by Paschim Gujarat Vij Company to adopt tariffs for 276 MW of solar power projects under Component C of the PM-KUSUM program.

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