Gujarat still a lucrative solar destination

The final tariffs for the Gujarat Solar Policy have declared for plants commissioned after 28 Jan 2012. While rejecting the request for extension of projects with deadlines of December 2012 due to inadequate reasoning, the Gujarat Solar Policy enters a new tariff phase for the period 2012-2013 for solar photovolatic (PV) and 2012-2015 for CSP. Interestingly rates for CSP are much higher than those for PV even though CSP is supposed to be a more efficient and cost effective technology.

The Gujarat Electricity Regulatory Commission (GERC) has decided to determine afresh the tariffs for solar projects to be commissioned after 28 January, 2012. The control period for the proposed tariff is from 29 January, 2012 to 31 March, 2015.

The separate tariffs determined and proposed by the Commission for (i) solar PV MW based power projects (ii) solar PV KW based rooftop power projects and (iii) solar thermal-based power projects.
In view of declining trend in the prices of solar PV globally, the Commission has decided to reduce the tariff by 7% per year during the second and third years of the control period.

The Commission approved the tariff for Procurement by the Distribution Licensees and others from Solar Energy Projects for the Control Period from 29 January, 2012 to 31 March, 2015 as outlined in the table below:

Summary of tariffs for solar PV power plants commissioned between 29 January 2012 and 31 March 2015

Summary of tariffs for solar thermal power plants without storage commissioned between 29 January 2012 and 31 March 2015

The Commission's press release also states:

1. Solar power projects established with only new plants and machinery would be eligible for the benefit of tariff determined within the scope of this solar tariff order.
2. No cross-subsidy surcharges would be levied in case of third-party sale by the Solar Power Projects
3. The Intra-state ABT order will not be applicable to solar power generation projects. Considering the nature of solar energy, all solar energy power plants will be considered as “must-run” facilities, and the power generated from such power plants will be kept out from the merit order dispatch principles
4. In order to promote KW scale rooftop solar projects, no wheeling charges shall apply for wheeling of power generated by rooftop power projects as such projects decrease the transmission and distribution losses for the utility, and increase the efficiency of the grid.
5. The order also contains the relevant commercial aspects such as transmission charges, wheeling charges, security deposit and sharing of CDM (Clean Development Mechanism) benefits.
6. The proposed new tariff will be helpful to encourage generation of solar based electricity which is of renewable nature and will facilitate to reduce requirement of fossil fuel and also helpful on sustainable development. It will also enable distributed generation which will helpful in reduction of losses in local area and also provide job opportunities and development of personnel in the field of solar based power generation and operation and maintenance of it.

Editor's Note: Ritesh Pothan leads an advisory organization focused on renewable energy projects and also runs two of the largest renewable energy forums on linkedin.com dedicated to the Indian subcontinent.

You can reach him at ritesh@natgrp.net and the forums at Renewable Energy and Cleantech Forum - India as well as Solar Energy Professionals - India.