GSECL Seeks Tariff Approval For 35 MW Solar Project In Gujarat

A new petition has been filed before the Gujarat Electricity Regulatory Commission in Gandhinagar for determining the tariff of a 35 MW solar power project recently commissioned at Khandiya in the Surendranagar district. The petition has been submitted by Gujarat State Electricity Corporation Limited and names Gujarat Urja Vikas Nigam Limited as the respondent. The filing is based on the provisions of Section 62 read with Section 86 (1)(a) of the Electricity Act, 2003, which empowers the commission to fix tariffs for power generation. This petition marks the start of the regulatory review process that will decide the tariff structure for the project.

The solar project is a significant investment in Gujarat’s renewable energy sector and has been designed to supply clean and reliable power to the state grid. The petition gives a full financial outline of the project, starting with the total capital expenditure. It provides a detailed breakup of costs, including the purchase of solar photovoltaic modules, inverters, transformers, and other plant machinery. It also lists the costs of civil works, land, and other fixed assets. The capital structure of the project has been presented in the filing, showing a mix of debt and equity. This financing pattern is critical in calculating the return on equity, which is a key part of tariff determination. GSECL has proposed a particular equity contribution along with a return it considers fair for the investment risk.

The petition also focuses on operational and financial factors that affect tariff calculation. It includes the return on equity, depreciation of assets calculated on a straight-line basis, and the useful life of the project. The interest on loans taken for the project is explained as an essential cost that must be factored into the tariff. The operational and maintenance expenses are outlined, covering manpower, routine repairs, insurance, and administration. All these details are submitted to justify the tariff proposal and to show that the costs are reasonable and necessary for the plant’s smooth operation.

As a state-owned company, GSECL is required to seek tariff approval from the regulatory body to ensure fairness and transparency. The process protects both the company and electricity consumers by making sure the tariff is not too high or too low. The commission will review the petition, examine the financial and technical details, and may seek clarifications or hold public hearings before making a decision. The petition has also proposed a two-part tariff, separating fixed costs from variable costs to ensure stable revenues for the project.

The petition for the Khandiya solar project is an important milestone in Gujarat’s renewable journey. The commission’s decision will balance investor returns with consumer affordability while setting an example for upcoming renewable projects in the state. This regulatory process underlines the role of structured oversight in ensuring that solar projects remain sustainable, technically sound, and beneficial for both investors and consumers.