Power distribution companies in Gujarat can now procure solar and wind power from generation companies by way of competitive bidding. The Gujarat Electricity Regulatory Commission (GERC) has recently issued the tariff frameworks for the procurement of solar and wind power by distribution licensees in the state. This has replaced the earlier practice of generic tariffs.
The new control period of the tariff framework will be effective up to March 31, 2023, said state government sources. GERC had issued the previous generic tariff order in 2016, and the control period of the order expired on March 31, 2019.
The order on solar tariff framework was issued on May 8, and the commission said the useful life period for solar projects during the new control period will be 25 years. The commission further noted that 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.
GERC said that the solar power projects established with only new machinery will be eligible for the tariff approved in the order.