GSECL Seeks GERC Approval For Tariff Of 25 MW Palitana Solar Project In Gujarat

Gujarat State Electricity Corporation Limited (GSECL) has filed Petition No. 2620 of 2026 before the Gujarat Electricity Regulatory Commission (GERC) seeking approval for a project-specific tariff for its 25 MW solar photovoltaic project in Palitana, located in the Bhavnagar district of Gujarat. The project is part of a broader state government initiative aimed at utilizing wasteland areas near existing transmission infrastructure to generate affordable renewable energy.

The initiative was introduced in 2019, under which the Government of Gujarat provided key financial and land support to boost solar development. As part of the scheme, wasteland was allocated at a nominal lease rate for a period of 30 years, along with a 50 percent capital subsidy to developers. GSECL was assigned the responsibility to develop a total of 2,500 MW of solar capacity under this framework. The Palitana project represents one of the important developments under this program.

The engineering, procurement, and construction work for the project was awarded to Larsen & Toubro through a competitive bidding process. Initially, the project was planned with a higher DC capacity. However, due to land constraints at the site, the final installed capacity was adjusted to 25 MW AC and 28.18 MW DC.

According to the petition, the total capital cost of the project has been finalized at ₹296.33 crore. This includes the cost of equipment supply and construction, along with additional expenses such as pre-operative costs and head office supervision charges. The project was commissioned in two phases. The first phase of 5 MW became operational in May 2022, while the remaining 20 MW was commissioned in June 2022.

GSECL has signed a Power Purchase Agreement with Gujarat Urja Vikas Nigam Limited (GUVNL) for the sale of electricity generated from the plant. The agreement covers a period of 25 years. As per the terms of the PPA, the tariff for the project will be determined by GERC using a cost-plus approach. This method will take into account the 50 percent capital subsidy provided by the state government.

The petition has been filed under the provisions of the Electricity Act 2003, specifically Sections 62 and 86, which give the state electricity regulatory commissions the authority to determine tariffs for electricity generation and supply. The filing also follows an earlier direction from the commission, which required GSECL to submit a project-specific tariff petition after the plant achieved commercial operation.

Through this petition, GSECL has requested GERC to approve the final project cost and determine a fixed tariff for the electricity that will be supplied to GUVNL from the Palitana solar project.