GERC Reviews PGVCL’s Petition For 259 MW Solar Power Tariff Approval Under PM-KUSUM-C Scheme

Summary

Paschim Gujarat Vij Company Limited (PGVCL) has filed a petition with the Gujarat Electricity Regulatory Commission (GERC) seeking approval for the adoption of a tariff discovered through a competitive bidding process. The tariff is for 101 solar power plants with a total capacity of 259.0 MW, to be implemented under the PM-KUSUM-C scheme of the Government of India. The PM-KUSUM scheme aims to promote solar energy use in agriculture by installing solar pumps and grid-connected solar power plants. PGVCL is implementing the scheme in their area and has conducted a competitive bidding process to discover the tariff for these solar plants. The GERC is reviewing the petition and has scheduled a public hearing to gather comments and suggestions from stakeholders.[1]

Case Timeline

• 13.10.2023: PGVCL issued a Request for Selection (RfS) for 101 solar power plants under the PM-KUSUM-C scheme.
• 28.06.2024: The matter was first heard by the GERC.
• 10.07.2024: The GERC issued a daily order admitting the petition and scheduling a public hearing.
• 08.08.2024: The next hearing date is scheduled.

Issues Raised

• The main issue is whether to approve the tariff discovered through the competitive bidding process for the 101 solar power plants under the PM-KUSUM-C scheme.
• The GERC also needs to determine if the draft Power Purchase Agreement (PPA) submitted by PGVCL is in compliance with regulations.

Appellant’s Arguments (PGVCL)

• PGVCL has followed the guidelines of the Ministry of Power and the Government of Gujarat in implementing the PM-KUSUM scheme.
• The competitive bidding process was conducted transparently and fairly.
• The discovered tariff is competitive and will benefit consumers.
• All relevant documents have been submitted to the GERC.

Respondent’s Arguments

• No specific arguments were presented by respondents in this initial hearing. The GERC has invited stakeholders to submit their comments and suggestions during the public hearing process.

Order

• The GERC admitted the petition filed by PGVCL, acknowledging its jurisdiction to decide on the matter.
• A public hearing will be conducted to gather comments and suggestions from stakeholders before a final decision is made.
• PGVCL is directed to issue a public notice in newspapers and on their website, inviting stakeholders to submit their comments/suggestions/objections within 15 days.
• The GERC staff will upload the petition and relevant documents on the Commission’s website.
• The next hearing is scheduled for 08.08.2024.

Analysis

The GERC’s decision to hold a public hearing is crucial to ensure transparency and gather diverse perspectives on the proposed tariff and PPA. This step allows for a comprehensive evaluation of the potential impact on consumers and the overall electricity market. The GERC’s final decision will depend on the feedback received during the public hearing and its assessment of the submitted documents and arguments. This case demonstrates the regulatory process in action, balancing the interests of various stakeholders in the energy sector.

[1] https://gercin.org/wp-content/uploads/2024/07/2355-of-2024-.docx-100724.pdf