In recent proceedings related to Gujarat’s renewable energy initiatives, Gujarat Urja Vikas Nigam Limited (GUVNL) has sought approval for the adoption of tariff rates determined through a competitive bidding process for the establishment of large-scale solar photovoltaic (PV) power projects in Khavda, Gujarat.
GUVNL filed a request for tariff adoption based on the competitive bidding process conducted on January 29, 2024, aiming to procure power from 1125 MW grid-connected solar PV projects to be developed at GSECL’s RE Park in Khavda (GSECL Stage – 3). The tender announcement, published in national newspapers on January 31, 2024, revealed tariff rates ranging from Rs. 2.62 to Rs. 2.67 per unit for the 1125 MW capacity.
During the regulatory hearing, concerns were raised regarding the tariff discrepancies observed between the recent bidding process and the previous one conducted on July 4, 2023, for a 600 MW solar PV project in the same region. The tariff rates discovered in the January 2024 bidding were notably higher than those from the earlier bidding process. GUVNL was asked to provide detailed justifications for these tariff variations, particularly considering the decreasing trend in solar module prices and other relevant factors affecting bidding outcomes.
The regulatory commission noted the absence of representatives from the concerned parties during the hearing, despite issued notices. Furthermore, the commission emphasized the need for comprehensive disclosures from GUVNL regarding the bidding process details, from initiation to completion, to facilitate informed decision-making on tariff adoption requests.
GUVNL was directed to submit detailed affidavits addressing the tariff differences and providing a complete overview of the bidding process within a specified timeframe. This directive aimed to ensure transparency and clarity in future tariff adoption petitions presented by GUVNL.
The commission’s actions underscore the importance of transparent and well-documented processes in determining tariff rates for large-scale solar PV projects. The regulatory body seeks to promote accountability and informed decision-making to support Gujarat’s renewable energy objectives effectively.
As the matter progresses, the commission will evaluate the submissions from GUVNL and make informed decisions regarding the adoption of tariff rates for the proposed solar PV projects in Khavda. The outcome of these proceedings will have implications for the state’s renewable energy landscape and contribute to its sustainable development goals.
The regulatory proceedings highlight the complexities and considerations involved in determining tariff rates for grid-connected solar PV projects in Gujarat. The commission’s directives aim to enhance transparency and accountability in the renewable energy sector, supporting the state’s transition towards cleaner and more sustainable energy sources.
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