Gujarat Files Petition to Purchase Surplus Solar Power from MSMEs at ₹1.75/kWh

The state recently changed its policy to support MSMEs


The Gujarat Urja Vikas Nigam Limited (GUVNL) recently filed a petition with the Gujarat Electricity Regulatory Commission (GERC) to get the tariff approved for purchasing surplus solar power generated by Micro, Small, and Medium Enterprises (MSMEs) at ₹1.75 ($0.025)/kWh.

The effective date of the petition, once approved by the GERC, will be September 26, 2019.

In September 2019, the Gujarat government relaxed the state’s solar policy to allow MSMEs to install solar projects that are more than 100% of their sanctioned load or contract demand.

The latest guidelines issued by the Gujarat government say that MSMEs would be able to sell the excess solar energy to the state government at the cost of ₹1.75/kWh.

The petition filed by GUVNL also states that MSMEs would be allowed to set up ground-mounted projects under open access to avail the benefits while also enabling them to procure solar power from a third party.

According to the petition, MSMEs are defined based on the investment in their manufacturing enterprises which is listed as – not be more than ₹2.5 million ($34,700) for micro-enterprises,  more than ₹2.5 million ($34,700) and less than ₹50 million ($694,000) for small enterprises and ₹50 million ($694,000) and less than ₹100 million ($1.4 million) for medium enterprises.

The petition also states that the transmission and wheeling charges and losses for wheeling of power will apply for both captive use and third-party sale projects under open access. Cross-subsidy surcharge and additional surcharge will apply to normal open access consumers under third-party sale. Also, electricity duty will apply to consumers. The petition also lays down the rules for energy accounting, which clarify that it will be carried out on a 15-minute time block basis.

Earlier this year, the state commission had passed an order stating that no additional surcharge will apply to consumers of four of Gujarat’s DISCOMs for utilizing power through open access between April and September 2019.

In August 2019, the GERC had passed an order allowing GUVNL and other distribution companies in the state to procure power from small solar projects of capacity up to 4 MW to meet their renewable purchase obligations.

Shaurya is a staff reporter at with experience working in the Indian solar energy industry for the past four years in various roles. Prior to joining Mercom, Shaurya worked with a renewable energy developer and a consulting company. Shaurya holds a Bachelors Degree in Business Management from Lancaster University in the United Kingdom.