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Tariff Approval for Uttar Gujarat Vij Company Limited (UGVCL) Solar Projects under PM-KUSUM

The Gujarat Electricity Regulatory Commission (GERC) has approved electricity tariffs ranging from Rs2.12 /kWh to Rs3 /kWh for the Uttar Gujarat Vij Company Limited (UGVCL) regarding its 154 MW solar power projects within the framework of the PM-KUSUM program. This approval also permits UGVCL to enter into power purchase agreements (PPAs) at these negotiated tariffs.

UGVCL had initially invited bids for 170.5 MW of solar projects under the program, expecting bids below the ceiling tariff of Rs3 /kWh. The bidding process attracted 86 offers totaling 154 MW, with costs varying between the approved rates. The GERC, upon analysis, confirmed that the tariffs resulted from a competitive bidding environment, with 139 MW of the bids falling below the Rs3 limit.

The overall average tariff calculated for the approved capacity stood at Rs2.45 /kWh. Moreover, UGVCL was instructed to publicly announce the selected bidders for the PPAs, maintaining this information on its website for a period of 30 days. This marks a significant step in promoting solar energy, with GERC previously approving tariffs for 101 Paschim Gujarat Vij Company solar projects under the same program, highlighting ongoing progress in renewable energy initiatives in Gujarat.