A petition has been filed under Section 86 (1) (a), (b), and (e) of the Electricity Act, 2003, concerning the procurement of power under the “Gujarat Renewable Energy Policy – 2023.” This policy is part of the Gujarat government’s ongoing efforts to promote renewable energy in the state.
The Gujarat Electricity Board has been reorganized into seven functional entities following the Gujarat Electricity Industry Reorganization and Transfer Scheme, 2003, which is part of the Gujarat Electricity Industry (Reorganization and Regulation) Act of 2003. This reorganization has separated the generation, transmission, distribution, bulk power purchase, and supply functions. The generation function has been assigned to the Gujarat State Electricity Corporation Limited (GSECL), transmission to the Gujarat Energy Transmission Corporation Limited (GETCO), and distribution to four companies: Madhya Gujarat Vij Company Limited (MGVCL), Uttar Gujarat Vij Company Limited (UGVCL), Paschim Gujarat Vij Company Limited (PGVCL), and Dakshin Gujarat Vij Company Limited (DGVCL). The bulk purchase and sale of power have been assigned to Gujarat Urja Vikas Nigam Limited (GUVNL), which manages this process on behalf of the four distribution companies.
According to the Electricity Act of 2003, distribution companies are required to procure power from renewable energy sources. This is in line with the Gujarat Electricity Regulatory Commission (GERC) regulations, which are updated periodically. GUVNL, on behalf of the distribution companies, enters into Power Purchase Agreements (PPAs) with various renewable energy producers to meet this requirement.
The Ministry of Power recently issued guidelines for tariff-based competitive bidding for the procurement of power from grid-connected solar and wind projects. These guidelines specify that for State Transmission Utility (STU) connected solar and wind projects, the minimum bid quantum is set at 10 MW. Projects smaller than 10 MW, such as intra-state projects, are not covered under these guidelines.
An amendment issued by the Ministry of Power on October 20, 2023, introduced a revised Renewable Purchase Obligation (RPO) trajectory and new categories of RPO for different consumers. This applies to both distribution licensees and other designated consumers such as open-access consumers or captive users. These consumers must meet a portion of their electricity consumption from renewable energy sources. For smaller renewable energy projects, the distributed renewable energy component must come from projects under 10 MW. This includes solar projects using various configurations like net metering, virtual net metering, and other setups approved by the central government.
Under the Gujarat Renewable Energy Policy 2023, the government has allowed individuals, companies, associations, or groups, whether incorporated or not, to set up renewable energy projects. These include solar projects up to 4 MW and wind projects up to 10 MW for selling electricity to distribution licensees, following the policy’s guidelines.
The petition submitted by GUVNL seeks approval for several measures. First, it requests the commission to approve a mechanism for determining the tariff for renewable energy projects that are exempt from competitive bidding under the Gujarat Renewable Energy Policy 2023. This mechanism will apply to solar projects between 0.5 MW and 4 MW and wind projects between 0.5 MW and 10 MW. The petition also asks for approval to sign PPAs for these projects and to endorse the draft Standard Operating Procedure (SOP) and the draft PPA annexed to the petition.
The petitioners also request that the commission allow them to make additional submissions as needed and to pass any further orders deemed appropriate for this case. This petition highlights the ongoing steps being taken to support the development and integration of renewable energy in Gujarat under the state’s renewable energy policy.
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