GERC Approves INR 2.34/kWh Solar Tariff For 1,250 MW Projects Under GUVNL Phase XXVIII Tender In Gujarat

The Gujarat Electricity Regulatory Commission (GERC) has approved a competitive tariff of ₹2.34 per unit for 1,250 MW of grid-connected solar power projects under Gujarat Urja Vikas Nigam Limited’s (GUVNL) Phase XXVIII bidding process. The approval covers 625 MW of base capacity and an additional 625 MW under the Greenshoe option, marking another step towards expanding Gujarat’s renewable energy capacity.

The Commission adopted the tariff under Section 63 and Section 86(1)(b) of the Electricity Act, 2003, following a petition filed by GUVNL seeking approval of the tariffs discovered through its competitive bidding process. The projects will be developed without energy storage facilities and will supply solar power to the state’s distribution companies.

The bidding process attracted significant interest from renewable energy developers across the country. A total of 24 bids were received, representing an aggregate capacity of 4,176.7 MW. Following techno-commercial evaluation by the designated committee, all 24 bidders qualified for the financial bidding stage. Subsequently, the highest bidder was eliminated in accordance with the bidding rules, leaving 23 participants for the electronic reverse auction conducted on March 17, 2026.

The reverse auction resulted in a tariff of ₹2.34 per unit for the base capacity. This represented a reduction of ₹0.31 per unit, or 11.69%, compared with the lowest initial quoted tariff, highlighting the impact of competitive bidding in bringing down solar power procurement costs.

Three renewable energy developers secured allocations under the tender. Welspun Renewable Energy Private Limited was awarded 300 MW of base capacity at ₹2.34 per unit, with an offered Capacity Utilisation Factor (CUF) of 28.9%.

NLC India Renewables Limited secured a total allocation of 900 MW, comprising 300 MW of base capacity and 600 MW under the Greenshoe option. The company offered a CUF of 26% at the discovered tariff of ₹2.34 per unit. Meghmani Renew Energy Private Limited received an allocation of 50 MW, including 25 MW of base capacity and 25 MW under the Greenshoe option, with an offered CUF of 24.5%.

GERC noted that the procurement is important for GUVNL and its distribution companies to meet their Renewable Purchase Obligations (RPO) prescribed by the Ministry of Power and applicable state regulations through FY 2029-30. The Commission also highlighted that long-term procurement of solar power at a fixed tariff for 25 years would help manage electricity procurement costs and reduce exposure to fluctuations in thermal power prices.

Following the approval, GERC directed GUVNL to execute Power Purchase Agreements (PPAs) with the successful developers within the prescribed timelines. The company must also include applicable Late Payment Surcharge provisions in the agreements and submit copies of the executed PPAs, along with compliance affidavits, to the Commission.

Additionally, GUVNL has been directed to publish details of the successful bidders and tariff components on its official website to ensure transparency in the procurement process.