GSECL Seeks Tariff Approval From GERC For 45 MW Solar Project In Bhavnagar

The Gujarat State Electricity Corporation Limited (GSECL) has filed a petition before the Gujarat Electricity Regulatory Commission (GERC) seeking approval for the tariff determination of its newly developed 45 MW solar power project. The project is located at Badeli in the Bhavnagar district and is part of the state government’s broader plan to promote renewable energy development on unused government land.

This solar photovoltaic project has been developed under a 2019 scheme launched by the Government of Gujarat. The initiative focuses on utilizing wasteland areas located near existing transmission infrastructure to reduce land acquisition challenges and bring down project costs. Under this scheme, GSECL has been assigned the responsibility of developing around 2,500 MW of solar capacity across the state. A key feature of the program is a 50% capital subsidy provided by the state government, aimed at making solar power more affordable for consumers.

The Badeli solar project was identified after detailed feasibility studies and was awarded through a competitive bidding process. Premier Solar Powertech Pvt Ltd was selected as the contractor for executing the project. The plant was developed in two phases and achieved full commissioning by the end of April 2025.

Initially, the project cost was estimated at around ₹269.92 crore. However, after including additional expenses such as project supervision and pre-operative costs, the total cost increased to approximately ₹290.67 crore. After completion, GSECL signed a Power Purchase Agreement (PPA) with Gujarat Urja Vikas Nigam Limited in January 2026 to supply electricity generated from the plant.

As per the provisions of the Electricity Act 2003, tariff approval from the state regulator is mandatory for such projects. The PPA specifies that GUVNL will procure power from the project at a tariff that will be determined by GERC for a period of 25 years.

A major factor in deciding the tariff will be the 50% capital subsidy provided by the state government, which is expected to significantly reduce the cost of electricity generation. GSECL has requested the Commission to approve the final project cost and determine the tariff by considering key factors such as operation and maintenance expenses, financial structure, and return on equity.

This petition represents an important step in Gujarat’s renewable energy expansion plans, as the state continues to strengthen its clean energy capacity through public sector-led solar projects.