After raising tariff for procurement of power generated from wind energy sources, Gujarat Electricity Regulatory Commission (GERC) has now proposed a tariff of Rs. 14 per unit and Rs. 10 per unit for power generated from solar photovoltaic (PV) and thermal power projects respectively.

As per the draft order the state power regulator, the tariff for procurement of power generated from solar PV projects is fixed at Rs. 14 per kwh for first twelve years starting from the commissioning of the power plant and Rs. 4 per kwh from 13th year to 25th year.

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The state power regulator has also invited comments, suggestions and objections from the stakeholders. The final tariffs will be determined after considering the views of the stakeholders.

Recently, Astonfield Solar (Gujarat) Pvt Ltd, a special purpose vehicle (SPV) floated by Kolkata-based Astonfield Renewable Resources Limited (ARRL), approached the power regulator seeking determination of Rs. 19.92 per kwh for 25 MW of power to be generated from its solar PV project in Gujarat.

Solar power experts believe that the cost of solar power generation may range from Rs. 13 to 18 per kwh depending upon cost and location of the project.

In order to promote power generation from renewable energy sources, various steps are being taken in the state.

Last month, GERC raised tariff for wind power procurement to Rs. 3.55 per kwh from earlier level of Rs. 3.37 per kwh.

Apart from this, GERC has also raised the limit of wind and solar power to be purchased by distribution licensees. The purchase limit for power generated from wind energy has been increased to 6 per cent for fiscal 2009-10 and 7 per cent for financial years 2010-11 and 2011-12. Earlier, the limit was 2 per cent for wind power.

As far as solar power is concerned the limit has been fixed at 1.5 per cent for the first two fiscals and 2.5 per cent for the year 2011-12.

In case of other renewable sources the limit is 0.5 per cent for the next three financial years.

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