Daily News Wrap-Up: Gujarat Unveils New Renewable Energy Policy

Madhya Pradesh floats 300 MW KUSUM solar tender

October 6, 2023


Gujarat unveiled its renewable energy policy focusing on leveraging the state’s potential of 36 GW of solar and 143 GW of wind capacity to enable a cost-effective and reliable power supply. Through the large-scale adoption of renewable energy, the state hopes to transition smoothly to a clean energy regime by deriving synergistic value streams through wind-solar hybrid projects. The state anticipates an investment of ₹5 trillion (~$60 billion) in the renewable energy sector. The policy will be in force until September 30, 2028.

Madhya Pradesh Urja Vikas Nigam invited bids to set up 300 MW of grid-connected solar power projects under Component C of the Pradhan Mantri Kisan Urja Suraksha evam Utthan Mahabhiyan program at various locations in the state. The last day to submit the bids is January 2, 2024. The bids will be opened on January 18. Bidders must submit ₹100,000 (~$1201)/MW of the quoted capacity as bid security. The successful bidder will have to furnish an amount equivalent to ₹500,000 (~$6007)/MW of the allotted capacity as a performance bank guarantee within 30 days from the date of issue of the award letter.

The Telangana State Electricity Regulatory Commission increased the additional surcharge for open access consumers to ₹1.98 (~$0.0237)/kWh for the second half of the financial year 2023-24. The new rate, effective from October 1, 2023, to March 31, 2024, is a 408% increase from ₹0.39 (~$0.0046)/kWh set by the Commission for the first half of the year. The Southern Power Distribution Company of Telangana and the Northern Power Distribution Company of Telangana had filed petitions to determine the additional surcharge levied on open access consumers for 2H of FY 2023-24.

Uttarakhand Electricity Regulatory Commission revised the additional surcharge to ₹1.05 (~$0.013)/kWh for consumers sourcing power through open access from October 1, 2023, to March 31, 2024. In its petition, Uttarakhand Power Corporation (UPCL) sought an additional surcharge of ₹1.22 (~$0.015)/kWh. UPCL pointed out that the consumers drew 5.97 million units (MU) of open access energy at the state periphery from October 2022 to March 2023 and that 5.65 MU was the total stranded energy due to open access.

The Indian Energy Exchange traded 230 million units (MU) of renewable energy in September 2023, a year-over-year (YoY) decline of 49.3% from 454 MU and a 5% drop from 242.3 MU traded in August. During September, the total traded volume reached 9,147 MU, indicating a YoY increase of 13%. The total volume comprised green energy trade, renewable energy certificates (515 MU), and energy saving certificates (106 MU). The strong demand observed in August persisted into September when the nation’s electricity usage surged to 140 BU, a YoY growth of 10% from 127 BU.

In a recent interaction with regulatory bodies from across the country, Union Minister for Power and New & Renewable Energy R.K. Singh emphasized the need for cost-reflective tariffs and compliance with the Electricity (Rights of Consumers) Rules. The meeting discussed crucial aspects of India’s power sector and the role of regulatory commissions. One of the central points raised by the Minister was the necessity for regulators to ensure that tariffs cover the entire cost of services provided by distribution companies.