GERC Reviewing GUVNL’s Petition For 1,125 MW Solar Power Tariffs In Gujarat

The Gujarat Electricity Regulatory Commission (GERC) recently heard a petition from Gujarat Urja Vikas Nigam Limited (GUVNL). This petition sought approval for tariffs discovered through a competitive bidding process for the procurement of power from 1,125 MW grid-connected solar photovoltaic power projects. These projects are planned to be established in the Gujarat State Electricity Corporation Limited’s (GSECL) Renewable Energy Park at Khavda.

GUVNL, the petitioner aimed to secure the adoption of tariffs determined under a transparent competitive bidding process. This process followed a Request for Selection (RfS) issued by GUVNL for solar power procurement without energy storage. The bidding process and subsequent e-reverse auction were part of GUVNL’s efforts to enhance renewable energy procurement in alignment with state and national energy policies.

The respondents in the case included several major energy companies such as Engie Energy India Private Limited, NHPC Limited, JSW Neo Energy Limited, SJVN Green Energy Limited, and NTPC Renewable Energy Limited. However, not all respondents were presented during the hearing.

The petition detailed the restructuring of the Gujarat power sector, which started in 2003, leading to the creation of separate entities for generation, transmission, and distribution of electricity. GUVNL, as a bulk purchaser and supplier of power, entered into numerous Power Purchase Agreements (PPAs) with renewable energy generators to fulfill the state’s renewable energy procurement mandates.

The competitive bidding process for the 1,125 MW solar power projects was part of a larger scheme. This scheme included previous tranches where GUVNL had signed PPAs for a cumulative capacity with various companies at specified tariffs. The new phase aimed to procure power at competitive rates, ensuring compliance with Renewable Purchase Obligations (RPO) and maintaining control over power purchase costs.

During the petition, GUVNL highlighted the approval processes and deviations from standard bidding guidelines. These deviations were approved by the Government of Gujarat to accommodate specific requirements for the Khavda Renewable Energy Park projects. The state government had previously allocated significant land for renewable energy development in the Khavda region, with GSECL and other entities receiving substantial portions for solar and wind projects.

GUVNL also referenced the Ministry of Power’s guidelines for tariff-based competitive bidding, which mandate that the tariffs determined through such processes be adopted by the respective state commissions. The petitioner stressed the necessity of timely adoption of these tariffs to avoid delays in project execution and to secure the benefits of the PPAs for meeting future RPO compliance and controlling overall power purchase costs.

The petition concluded with GUVNL requesting the Commission to adopt the discovered tariffs, allow modifications to the petition if needed, and pass any other orders to expedite the process in the interest of justice and efficient power procurement.

The GERC, after considering the petition and the regulatory framework, admitted the petition, recognizing its jurisdiction and the powers vested by the Electricity Act and related regulations. The commission acknowledged the significance of transparent competitive bidding and the necessity for regulatory oversight in power procurement processes to ensure fair pricing and efficient energy supply within the state.

Please view the document here for more details.