The Gujarat Electricity Regulatory Commission (GERC) has deferred the adoption of a ₹2.34 per kWh tariff discovered for 1,250 MW of solar power being procured by Gujarat Urja Vikas Nigam Limited (GUVNL).
The Commission has sought additional information on renewable energy curtailment, grid stability, energy storage and the overall cost of integrating additional solar power into Gujarat’s electricity system before taking a final decision.
1,250 MW Solar Procurement
GUVNL approached GERC for approval of the tariff discovered through its Phase XXVIII competitive bidding process.
The procurement consisted of 625 MW of base capacity and another 625 MW under the Greenshoe option. The tender received 24 bids totaling 4,176.7 MW.
Following an e-reverse auction held in March 2026, a tariff of ₹2.34/kWh was discovered for the successful bidders.
Successful Solar Developers
The allocations at the discovered tariff included:
- NLC India Renewables: 900 MW in total, including 300 MW of base capacity and 600 MW under the Greenshoe option.
- Welspun Renewable Energy: 300 MW of base capacity. The company did not opt for the Greenshoe allocation.
- Meghmani Renew Energy: 50 MW in total, including 25 MW of base capacity and 25 MW under the Greenshoe option.
GUVNL’s Position
GUVNL stated that the discovered tariff was lower than tariffs achieved in earlier solar procurement rounds.
The utility also said the procurement would help Gujarat meet its Renewable Purchase Obligations (RPOs) through FY 2029–30 and contribute to India’s target of achieving 50% non-fossil-fuel-based installed electricity capacity by 2030.
GERC Raises Grid Stability Concerns
Despite the competitive tariff, GERC has requested further information before approving the procurement.
The Commission has raised a 13-point set of queries covering areas such as:
- Renewable energy curtailment
- Grid management and stability
- Energy storage requirements
- Resource adequacy
- Balancing and backing-down requirements
- Overall cost of integrating additional solar power
GERC has specifically asked GUVNL to provide daily renewable energy curtailment data from September 1, 2025, to August 31, 2026, along with a time-bound plan to address the issue.
Storage and Integration Under Review
The Commission has also questioned whether procuring standalone solar power without storage or Firm and Dispatchable Renewable Energy (FDRE) components could create additional challenges for grid stability.
GERC has directed GUVNL to demonstrate that the procurement is consistent with updated Resource Adequacy plans and to assess the overall cost after considering storage, balancing and backing-down requirements.
Next Steps
GUVNL requested three weeks to submit technical studies, curtailment data and supporting documents.
GERC has allowed the request and directed GUVNL to submit its additional response by September 23, 2026. A further hearing will be scheduled after the submission.
