GERC Reviews UGVCL’s Petition For Solar Tariffs And 154 MW Capacity Under PM-KUSUM-C Scheme

The Gujarat Electricity Regulatory Commission heard a petition from Uttar Gujarat Vij Company Limited (UGVCL) concerning the adoption of tariffs discovered under a competitive bidding process for solar projects. This initiative is part of the PM-KUSUM-C Scheme for solarizing agricultural feeders in Gujarat. UGVCL sought the Commission’s approval for the discovered tariffs and the associated Power Purchase Agreement (PPA) with successful bidders for a total solar capacity of 154 MW.

The PM-KUSUM scheme, introduced by the Ministry of New and Renewable Energy (MNRE), facilitates the use of renewable energy in agricultural applications. The initiative aims to deploy decentralized solar power plants, standalone solar pumps, and grid-connected solar pumps. Under the Feeder Level Solarization (FLS) component, UGVCL invited bids for solarizing 11 kV feeders through a RESCO model. The bidding process, conducted online, included e-reverse auctions, with tariffs ranging from ₹1.00 to ₹5.50 per kWh. Following the auction, Letters of Intent (LOIs) were issued, with tariffs capped at ₹3.00 per kWh.

The Commission queried the justification for the ceiling tariff of ₹3.00 per kWh, which exceeded the levelized tariff of ₹2.76 per kWh determined in a prior order. UGVCL was asked to explain the deviation, considering the financial assistance of up to ₹1.05 crore per MW available under the PM-KUSUM scheme. The Commission also requested detailed documentation to ensure compliance with MNRE guidelines and alignment with market practices. Stakeholders were invited to provide comments or objections, with public notices issued to facilitate participation.

The Commission highlighted discrepancies between the proposed tariffs and market rates, referencing a recent tender by Gujarat Urja Vikas Nigam Limited (GUVNL) where tariffs ranged between ₹2.55 and ₹2.56 per kWh. It emphasized the need for UGVCL to address these concerns and submit supporting documents justifying the proposed tariffs and deviations.

To ensure transparency and stakeholder involvement, UGVCL was directed to upload the petition and relevant documents on its website. Public consultations and hearings will follow, enabling a comprehensive review. Pending compliance with these directives, the Commission deferred its decision, underscoring the necessity of adhering to procedural rigor and maintaining competitive tariff benchmarks.