The Gujarat Electricity Regulatory Commission (GERC) has approved Gujarat Urja Vikas Nigam’s (GUVNL) petition seeking tariff approval for procuring power from 1,000 MW of solar projects.

The total capacity awarded comprises 500 MW base capacity and an additional 500 MW under the greenshoe option. The weighted average tariffs ranged from ₹2.55 (~$0.0298)/kWh to ₹2.555(~$0.0299)/kWh.

The Commission found the bidding process transparent and compliant with the Electricity Act and the Ministry of Power’s guidelines. It directed GUVNL to execute power purchase agreements (PPAs) with the bidders and submit copies of the signed agreements.

Background

In August 2024, GUVNL invited bids to purchase power from 500 MW of grid-connected solar power projects to be set up anywhere in India, with a greenshoe option of an additional 500 MW. Following the e-reverse auction, S.B.B. Mouldings, Kintech Synergy, Enertech Fuel Solutions, Prozeal Green Energy, Ausom Enterprise, Drashta Green Power, and SAEL Industries emerged as winners.

Prozeal, Kintech, Ausom, Enertech, S.B.B., and Drashta won 100 MW, 50 MW, 50 MW, 40 MW, 10 MW, and 10 MW, respectively, at a tariff of ₹2.55 (~$0.0298)/kWh.

SAEL won 240 MW out of the quoted capacity of 300 MW at ₹2.56 (~$0.0298)/kWh under the bucket-filling method.

Kintech, Enertech, Drashta, and SAEL accepted additional greenshoe capacity of 50 MW, 203 MW, 7 MW, and 240 MW at a tariff of ₹2.55 (~$0.0298)/kWh.

The power from these projects was intended to fulfill renewable purchase obligations and support Gujarat’s Kisan Suryodaya Yojana, which supplies daytime power to agricultural consumers.

GUVNL highlighted that the bidding process adhered to the Ministry of Power’s 2023 guidelines, with deviations approved by the Gujarat government. GUVNL also noted that the e-reverse auction resulted in competitive tariffs compared to recent solar tenders.

All seven successful bidders submitted affidavits supporting GUVNL’s petition, confirming their acceptance of the discovered tariffs and allocated capacities. During the hearings, GERC raised concerns about the bidders’ declared Capacity Utilization Factor (CUF) and its impact on landed tariffs. GUVNL clarified that the minimum CUF requirement was increased from 17% to 22% to optimize transmission costs and that bidders could adjust CUF within a year of project commissioning.

Commission’s Analysis

GERC scrutinized the technical and financial bid evaluation reports, confirming that the process complied with guidelines. GERC affirmed the tariffs’ validity but mandated PPAs to incorporate the Electricity (Late Payment Surcharge) Rules, 2022.

It ordered GUVNL to execute PPAs within 30 days of the order, submit signed PPAs with an affidavit confirming compliance, and publicly disclose bidder names and tariff breakdowns on its website for transparency.

The Commission also noted GUVNL’s past lapses in submitting complete bidding documents and directed the utility to provide all relevant details for future petitions.

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