The Gujarat Electricity Regulatory Commission (GERC) has approved a tariff of ₹2.83 (~$0.033)/kWh for solar projects installed under Component-C of the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM) program.

Background

In 2023, four distribution companies (DISCOMs), Uttar Gujarat Vij Company, Madhya Gujarat Vij Company, Dakshin Gujarat Vij Company, and Paschim Gujarat Vij Company (PGVCL), filed a petition with GERC to approve a tariff of ₹2.83 (~$0.033)/kWh for purchasing surplus energy from solar projects installed under Component-C of the PM-KUSUM program. Gujarat Urja Vikas Nigam (GUVNL) joined them as a co-petitioner.

The petitioners referred to a 2019 order approving the same tariff.

In the same year, the Commission directed the petitioners to issue a public notice inviting stakeholder comments and suggestions.

Gujarat Krushi Vikas Grahak Suraksha Sangh posed objections after the public notice. One of its key submissions was to increase the tariff from ₹2.83/ kWh (~$0.033) to ₹5 (~$0.059)/kWh for five years from the commencement date.

It also asked to reduce the minimum participation criterion of participation from 70% of farmers on a power supply feeder to be eligible for the program to 50%. It requested giving priority to feeders with the highest percentage of participating farmers.

On the objection regarding the minimum limit, PGVCL submitted that the minimum participation criterion under Gujarat’s Suryashakti Kisan Yojana program was necessary to increase farmer participation and make the power supply feeders more self-sufficient.

The petitioners also submitted that the requested tariff was competitive compared to the surplus injection tariff applicable to other consumer categories. They submitted that agricultural consumers have a lower tariff than residential and non-returnable gate pass/low-tension metering (or) demand categories. The requested tariff was necessary to incentivize agricultural consumers for individual-level solarization.

Commission’s Analysis

The Commission dismissed the proposal to lower the minimum participation threshold for feeder eligibility. It highlighted the need for consistency with the Suryashakti Kisan Yojana program and the aim of maintaining a self-sustainable power supply on feeders.

GERC acknowledged that the tariff requested by the petitioners was competitive and incentivized agricultural consumers, given their lower tariff category compared to residential and industrial consumers.

It approved the ₹2.83 (~$0.033)/kWh tariff for purchasing surplus energy by the DISCOMs and confirmed that net energy drawn from the grid will be charged at the regular agricultural tariff.

The Commission also directed the petitioners to frame a detailed procedure for a grievance redressal mechanism within two months. The procedure must specify the competent offices for redressing disputes and grievances.

Recently, GERC issued a detailed draft procedure for renewable energy projects seeking connectivity to the state’s grid. The procedure applies to multiple stakeholders, including applicants covered under Regulation (4) of the GERC Open Access Regulations 2011, developers of renewable energy projects with or without energy storage systems, standalone energy storage systems, and renewable energy parks.

Subscribe to Mercom’s real-time Regulatory Updates to ensure you don’t miss any critical updates from the renewable industry.