Gujarat’s Renewable Energy Push: GUVNL Secures 600 MW Of Solar Power Through SECI Agreement

In a recent development in Gujarat’s renewable energy sector, Gujarat Urja Vikas Nigam Limited (GUVNL) has taken a significant step towards enhancing the state’s solar power capacity by filing a petition with the Gujarat Electricity Regulatory Commission. This petition seeks approval for a Power Sale Agreement (PSA) with the Solar Energy Corporation of India Limited (SECIL) to procure 600 MW of solar power from projects under SECI’s ISTS Solar Tranche – XI Scheme.

The PSA, with a discovered tariff rate of ₹2.60 per kWh, includes a trading margin of ₹0.07 per kWh applied by SECI over the discovered tariff. This agreement, facilitated through a competitive bidding process, aims to support GUVNL in meeting its renewable purchase obligations (RPOs) and addressing the rising power demand in Gujarat, particularly during solar hours, which are crucial for agricultural needs.

Under the Electricity Act, 2003, which regulates electricity procurement processes, GUVNL is pursuing this agreement to bolster its renewable energy capacity in alignment with national and international climate commitments. The procurement of 600 MW of solar power not only supports Gujarat’s renewable energy targets but also contributes to grid stability and promotes environmentally friendly power sources.

The tariff rate of ₹2.60 per kWh, established through transparent bidding, reflects ongoing efforts to make solar power more affordable and accessible. This rate ensures the financial viability of solar power procurement for GUVNL while promoting increased renewable energy penetration in the state’s energy mix.

The PSA outlines key details such as project capacity, commissioning timelines, and the roles and responsibilities of both GUVNL as the buyer and SECIL as the seller. It also underscores the legal and regulatory framework governing the agreement, ensuring compliance with energy regulations and paving the way for future expansion of solar energy projects in Gujarat.

This initiative is part of GUVNL’s broader strategy to diversify its energy portfolio, reduce reliance on non-renewable sources, and contribute to sustainable development goals. By focusing on renewable energy procurement, GUVNL aligns with global trends and India’s commitments to carbon reduction and renewable energy expansion.

Please view the document here for more details.