GUVNL Receives 2605 Applications with 1546.45 MW Capacity for One-time Exit

solar panel

Gujarat Urja Vikas Nigam Limited (GUVNL) has received 2,605 applications for the one-time exit option offered by the state-run power utility to small-scale solar power developers. These applications represent solar power projects with the aggregate generation capacity of 1,546.45 MW.


The development followed the decision by the state government to offer zero subsidy for these smaller projects, at a fixed tariff of Rs 2.83/kWh or unit.

Earlier in the month of August GUVNL had announced a onetime exit option for small-scale distributed power developers to walk out of power purchase agreements (PPAs) they had signed with the state-run company. The agreements were for solar projects to be established under the Small Scale Distributed Solar Power (SSDSP) policy. The idea here was to focus on developing distributed solar energy, or plants that were off grid. According to the policy, any eligible developer can set up a solar power plant with a capacity ranging from 0.5 MW to 4.0 MW and supply the solar power produced to the nearest GETCO substation.

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After the state government decision on revoking subsidies, GUVNL had offered the option to withdraw, and the last date for the same was 5th of September. The exit option was provided to the developers after many of them complained of project unviability following the state government clarification that the projects under the SSDSP policy will not be eligible for any subsidy.

With this, about 65% of the total number of applicants have decided to exit PPAs and 62% of the total capacity has been offered for surrender. However 1,400 applicants with the cumulative capacity of 955 MW have not applied for the exit option. They will continue to set up solar projects in Gujarat under the state’s policy for the development of small-scale distributed solar projects, as per the sources.

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