GUVNL Seeks GERC Approval To Revise RPPO Targets And Waive FY2024-25 Compliance Penalties

Gujarat Urja Vikas Nigam Limited (GUVNL), along with its four subsidiary power distribution companies—Madhya Gujarat Vij Company Limited (MGVCL), Dakshin Gujarat Vij Company Limited (DGVCL), Paschim Gujarat Vij Company Limited (PGVCL), and Uttar Gujarat Vij Company Limited (UGVCL)—has approached the Gujarat Electricity Regulatory Commission (GERC) seeking revisions to its Renewable Power Purchase Obligation (RPPO) targets for the financial year 2024-25. The petition, registered as Petition No. 2644 of 2026, also requests the Commission to waive penalties for the shortfall in meeting the prescribed renewable energy purchase obligations.

According to the petition, GUVNL and its subsidiaries were required to achieve an overall RPPO target of 29.91%, equivalent to 38,601.13 million units (MUs) of renewable energy procurement. However, the utilities managed to procure only 31,997.81 MUs, representing 24.79% of total power purchases. This resulted in a net shortfall of 6,603.32 MUs, or 5.12%.

The filing provides a category-wise breakdown of the shortfall. Wind energy procurement missed the target by 384.00 MUs, while hydro power recorded a complete deficit of 490.58 MUs against its prescribed obligation. The largest gap was reported under the “other renewable energy” category, where the deficit reached 11,236.13 MUs. In contrast, Distributed Renewable Energy (DRE) significantly exceeded its target by generating a surplus of 5,507.39 MUs.

GUVNL stated that the shortfalls occurred due to factors beyond its control. It cited delays in renewable energy project commissioning caused by global supply chain disruptions affecting solar modules, difficulties in land allocation, and Right of Way issues. The utility also noted that actual generation from several renewable projects remained below expected levels because of lower-than-anticipated performance from wind and solar plants. In addition, three biomass power plants remained non-operational, further reducing renewable energy availability.

The utility also argued that the revised RPPO trajectory was introduced with limited preparation time, whereas new renewable projects generally require around 24 months for execution from planning to commissioning.

The petition further highlighted challenges in complying with the Energy Storage Obligation (ESO). Against a mandatory target of 1.0%, GUVNL procured only 10.44 MUs of energy storage due to the lack of operational and commercially viable energy storage projects in India during 2024-25. It also pointed to limited availability and high prices on platforms such as the Green Day Ahead Market (G-DAM).

In its petition, GUVNL has requested GERC to allow the surplus achieved under the DRE category to offset deficits in wind, hydro, and other renewable categories. The utility has also sought exemption from penalties and the requirement to purchase Renewable Energy Certificates (RECs), arguing that such measures would only increase the financial burden on electricity consumers without adding physical renewable power. GERC has directed GUVNL to publish public notices in leading English and Gujarati newspapers, inviting comments, objections, and suggestions from stakeholders before taking a final decision on the matter.