GERC Approves Flexible Connectivity Rights For Wind-Solar Hybrid Projects In Gujarat

The petition filed under case number 2377/2024 seeks amendments to a previous order related to the procurement of power from wind-solar hybrid projects, including storage, for the state. The petition, initiated by the Gujarat Energy Transmission Corporation (GETCO), focuses on revising the existing framework to allow for flexibility in transferring connectivity rights between renewable energy developers. Initially, the connectivity granted to projects was non-transferable. However, the petition highlights those circumstances, such as the involvement of multiple developers in a renewable energy park, necessitate a more flexible approach. This would facilitate smoother project execution and commercial operation.

During the proceedings, multiple stakeholders were invited to provide feedback on the proposed amendments. Public notices were issued in local Gujarati newspapers as well as English dailies to ensure wider stakeholder participation. Several stakeholders responded with suggestions, while others opposed the amendments on the grounds of maintainability and the original non-transferable nature of the connectivity framework.

Some objectors emphasized that the current regulations did not permit the transfer of connectivity once granted, arguing that such transfers could undermine the original purpose. Others pointed out that their projects, conceived under earlier guidelines, were already at advanced stages of execution. They raised concerns about the financial and logistical challenges faced due to the sudden imposition of new regulations that did not account for projects already in progress. These developers had already made significant investments and were expecting to commission their projects based on the old framework.

On the other hand, GETCO’s petition argued that the ability to transfer connectivity between developers within renewable energy parks would not only align with the state’s renewable energy goals but also address the practical challenges faced by developers operating in a collaborative environment. The petition proposed that a project developer acting on behalf of multiple entities should be allowed to transfer the connectivity rights to individual projects once they are ready for commissioning. This would facilitate the seamless integration of projects into the grid without delaying commercial operations.

The Gujarat Electricity Regulatory Commission (GERC), after considering the inputs from all stakeholders, acknowledged the merit of GETCO’s petition. It recognized that the renewable energy sector’s dynamic nature requires more flexible regulatory frameworks to support evolving project structures. However, the commission also noted the objections raised by stakeholders and clarified that the proposed amendments would apply only to future cases and would not retroactively affect projects that had already been granted connectivity under the old framework.

In its final order, the commission approved the proposed amendments, allowing for the transfer of connectivity rights under specific conditions. It emphasized that such transfers would only be permitted within the context of renewable energy parks and where developers act on behalf of multiple projects. Additionally, the commission stated that the amendments would not violate existing regulations as long as they followed the prescribed procedures for connectivity and adhered to the stipulations laid out in the updated framework.

Ultimately, the decision aims to balance the need for regulatory flexibility with the concerns of developers, ensuring that Gujarat continues to foster renewable energy development while maintaining a fair and transparent process for project execution. The commission’s approval of the petition sets a precedent for future cases involving similar requests for flexibility in the transfer of connectivity rights within the renewable energy sector.