Commission Approves 700 MW Solar Energy Procurement Agreement Between SECI and GUVNL at ₹2.57/kWh Tariff

A significant development in the energy sector has drawn attention to the recent approval process of a Power Purchase Agreement (PPA) between Gujarat Urja Vikas Nigam Limited (GUVNL) and the Solar Energy Corporation of India (SECI). This agreement focuses on the procurement of 700 MW of power from SECI’s Solar PV Power Plant, as part of the Ministry of New and Renewable Energy’s (MNRE) CPSU Scheme Phase-II, Tranche -III.

The initiation of this process began with GUVNL filing a petition for the approval of the PPA, which was executed on October 16, 2023. The agreed tariff for power procurement stands at ₹2.57 per kWh, a rate sanctioned by the Indian Renewable Energy Development Agency (IREDA).

Initially, SECI had offered 1,200 MW of solar power to GUVNL at a tariff of ₹2.45/kWh. However, adjustments were made due to alterations in the tax structure, particularly a rise in the GST rate from 5% to 12% on solar modules, as notified by the Government of India. Consequently, the tariff was revised to ₹2.57 per kWh, and SECI reduced the capacity to 700 MW.

In response to GUVNL’s petition, SECI expressed no objection to being included in the matter and requested the Commission to approve the PPA.

After careful consideration of submissions from both parties, the Commission decided to include SECI as a respondent in the case and approved the amended memo of parties. This decision was made following SECI’s consent to participation and its request for PPA approval.

The process involved GUVNL filing an application (IA No. 64 of 2023) for SECI’s inclusion as a respondent, which the Commission subsequently allowed. With SECI now involved, the matter concerning IA No. 64 of 2023 in Petition No. 2268 of 2023 has been resolved. The Commission has reserved its final order on the matter, indicating that further steps will be taken in due course. In essence, the approval of the PPA between GUVNL and SECIL for the procurement of 700 MW of solar power signifies a notable advancement in the renewable energy sector, fostering the expansion of clean energy generation in India.

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