Discoms in Gujarat to procure solar, wind power through competitive bidding

Gujarat power distribution companies will now have to procure solar and wind power from generation companies by way of competitive bidding.

Recently Gujarat Electricity Regulatory Commission (GERC) issued the tariff frameworks for the procurement of solar and wind power by distribution licensees in the state.

ET citing government sources notes that the new control period of the tariff framework will be effective up to March 31, 2023.

On May 8 the order on solar tariff framework was issued, and the commission said the useful life period for solar projects during the new control period will be 25 years.

Solar projects commissioned and power purchase agreements (PPAs) signed during the new control period will be eligible to sell power to distribution licensees of Gujarat noted GERC.

According to the publication the solar power projects established with only new machinery will be eligible for the tariff approved in the order. The maximum capacity of solar projects will be up to 50 per cent of the consumer’s sanctioned load for captive use, third party sale, or power projects set under the National Solar Mission for sale of power within the state.

For the power generated from small-scale solar projects between 0.5MW and 5MW, the procurement price shall be at the rate of tariff discovered by competitive bidding process at different time periods of six months plus an additional 20 paisa per kWh for projects located outside the solar park.

In case of wind power projects, to determine the tariff below the threshold limit of eligibility for participating in the competitive bidding, the weighted average of the latest tariff discovered through a competitive bidding process will be taken. The threshold limit for such projects is 25MW, the commission said in an order dated April 30.