GSECL Seeks GERC Approval For ₹2.01/kWh Tariff For 55 MW Sanes Solar Project In Gujarat

The Gujarat State Electricity Corporation Limited (GSECL) has filed Petition No. 2651 of 2026 before the Gujarat Electricity Regulatory Commission (GERC) seeking approval of the final tariff for its 55 MW Solar Photovoltaic Grid-Connected Power Project located at Sanes in Gujarat’s Bhavnagar district. The solar power project was commissioned on June 11, 2024, and began commercial operations on the same date. Following the commissioning of the plant, GSECL signed a Power Purchase Agreement (PPA) with Gujarat Urja Vikas Nigam Limited (GUVNL) on February 17, 2025, for the sale of electricity generated from the project.

According to the petition, the solar power plant has generated and supplied approximately 251 Million Units (MUs) of electricity to GUVNL from the date of commissioning until April 2026. Despite the successful operation of the project and continuous supply of power, GSECL has stated that it has not been able to raise bills or receive revenue for the electricity supplied because the tariff for the project has not yet been approved by the commission.

The company informed the regulator that the delay in tariff approval has adversely affected its financial position. Without an approved tariff, GSECL is unable to recover its costs or generate cash flow from the project. As a result, the utility has requested the commission to grant a provisional tariff at 95 percent of the proposed tariff until the final tariff order is issued. The company believes that this interim arrangement will help maintain its financial stability and support the continued operation of the project.

GSECL has reported that the total capital expenditure for the project was ₹251.25 crore, which works out to around ₹4.57 crore per MW. The project was developed under a Gujarat Government scheme on vacant land located near GETCO substations. The land was allotted on a nominal lease rental of ₹1 per hectare per year. The company further explained that 50 percent of the project cost was funded through a state government capital grant, while the remaining 50 percent was financed through GSECL’s internal resources. No external loans were availed for the project.

Considering the project cost, funding structure, and operational parameters, GSECL has proposed a levelized tariff of ₹2.01 per kWh for a period of 25 years.

As part of the regulatory process, GSECL published public notices in The Indian Express, Divya Bhaskar, and Sandesh on June 5 and 6, 2026. Stakeholders and members of the public have been invited to submit comments, suggestions, or objections on the petition to GERC by July 5, 2026.