GERC Introduces New Tariff Framework For Wind-Solar Hybrid Projects In Gujarat

The Gujarat Electricity Regulatory Commission (GERC) has introduced a new tariff framework for the procurement of power from Wind-Solar Hybrid Projects in Gujarat. This framework aims to regulate the purchase of electricity from such projects, including those with storage capabilities, and address various commercial issues.

According to the new order, applicable to projects commissioned after June 19, 2023, the GERC extends its previous tariff framework, which expired on March 31, 2023. The commission took into account national policies, such as the National Electricity Policy and the Tariff Policy, along with the Renewable Energy Policy of Gujarat 2023, in formulating this new framework.

The framework emphasizes the promotion of renewable energy sources and outlines guidelines for procurement through competitive bidding processes. It also addresses the conversion of existing standalone Wind or Solar projects into hybrid projects, allowing for the addition of new capacity with mutual consent between developers and distribution companies.

For projects above a certain threshold limit, determined by the Ministry of Power, tariff discovery will be conducted through competitive bidding under Section 63 of the Electricity Act 2003. Meanwhile, projects below this threshold will have tariffs based on the weighted average tariff of similar projects as of specific dates.

The GERC considered feedback from stakeholders, including industry associations and power procurers, in formulating this framework. Suggestions included aligning the control period with the expiry date of the previous tariff order and providing longer control periods for new projects.

In response, the commission decided to align the control period with the expiry date of the previous order and extend it until March 31, 2027. Projects commissioned during this period will benefit from the new framework’s provisions, including open access charges and incentives outlined in the Gujarat Renewable Energy Policy 2023.

The commission also addressed concerns raised by stakeholders regarding grid safety and the economic operation of the grid, emphasizing the importance of ensuring adequate transmission capacity for hybrid projects. Overall, the new tariff framework aims to streamline the procurement of power from Wind-Solar Hybrid Projects in Gujarat, promoting renewable energy adoption while ensuring grid reliability and economic efficiency.

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