GSECL Seeks Tariff Approval For 34 MW Chadavada Solar Project In Gujarat

The Gujarat State Electricity Corporation Limited (GSECL) has taken a key step toward advancing renewable energy in the state by filing a petition with the Gujarat Electricity Regulatory Commission (GERC) to determine the power tariff for its 34 MW solar project. The project is located at Chadavada in the Kutch district and is part of a broader plan by the state government to increase clean energy capacity using available wasteland near existing transmission infrastructure.

This solar power plant has been developed under a 2019 Government of Gujarat scheme that focuses on providing affordable renewable energy to consumers. Under this scheme, the state government offers a 50 percent capital subsidy, which helps reduce the overall project cost and makes the generated power more economical. The initiative also supports the efficient use of unused government land, reducing the need for acquiring new land and minimizing environmental impact.

The Chadavada project was awarded through a competitive bidding process. M/s. Kosol Energie Pvt Ltd. was selected as the lead contractor with a contract value of about ₹220.14 crore. After including additional costs such as pre-operative expenses and supervision charges, the total project cost increased to around ₹236.80 crore. The financial structure of the project reflects a mix of government support and careful planning to ensure long-term sustainability.

The solar plant started its commercial operations on September 11, 2025. Following this, GSECL signed a Power Purchase Agreement (PPA) with Gujarat Urja Vikas Nigam Limited (GUVNL) on January 31, 2026. As per the agreement, GUVNL will purchase the electricity generated from the project for a period of 25 years. The tariff for this power will be decided by GERC and will remain fixed for the entire duration of the agreement.

The petition filed by GSECL is an important regulatory requirement under the Electricity Act, 2003. The Act mandates that state electricity regulatory commissions determine tariffs for the supply of electricity from power generators to distribution companies. In its filing, GSECL has included various financial factors such as the government subsidy, depreciation, interest costs, and operation and maintenance expenses to arrive at a fair tariff proposal.

The project is expected to bring multiple benefits, including better use of land resources and reduced need for building new transmission lines, since it is located close to existing infrastructure. It also supports Gujarat’s ongoing efforts to promote renewable energy and reduce dependence on conventional power sources.

With this petition, GSECL has moved closer to finalizing the tariff for the Chadavada solar project. Once approved by GERC, the project will contribute to providing stable and affordable green energy to consumers in the state while supporting the broader goal of sustainable development.