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GERC Approves Rs2.60/kWh Tariff for 500 MW Solar Projects in Gujarat

The Gujarat Electricity Regulatory Commission (GERC) has approved a tariff of Rs2.60/kWh for solar power procurement by Gujarat Urja Vikas Nigam Limited (GUVNL). The approval covers 250 MW of solar capacity under its tender, plus an additional 250 MW through the greenshoe option, making the total 500 MW. Power Purchase Agreements (PPAs) will be signed for 25 years with the winning bidders.

GUVNL issued the tender in January 2025, attracting three bidders. After evaluation, Welspun Renewable Energy won 50 MW, Avaada Energy secured 100 MW, and SAEL Industries bagged 100 MW, all at the discovered tariff of Rs2.60/kWh. The remaining 250 MW under the greenshoe option was also offered at the same rate. GUVNL argued that the tariff was competitive compared to other recent auctions and essential for meeting Gujarat’s Renewable Purchase Obligation (RPO) targets.

GERC analyzed the bidding process, confirming it was transparent and competitive. It noted that the tariff matched market trends and would deliver affordable renewable power to consumers. The Commission emphasized the importance of timely project completion to ensure benefits. With this decision, Gujarat strengthens its renewable energy capacity and attracts further investment in clean energy infrastructure.