The Gujarat Electricity Regulatory Commission (GERC) has issued an order on a petition filed by Dakshin Gujarat Vij Company Limited (DGVCL) seeking approval for the adoption of a tariff discovered through a competitive bidding process for solar power projects. This procurement falls under Component-C of the PM KUSUM Scheme, specifically targeting feeder-level solarization (FLS) for agriculture feeders. DGVCL initiated this project to solarize 64 solar plants with a total capacity of 160 MW, aimed at serving 73,005 agricultural pump sets under its jurisdiction.

The bidding process was conducted under the RESCO model through a tender dated March 1, 2024. The bidding attracted a large number of participants. A total of 116 bids were received from 31 bidders, out of which 115 bids were found eligible after technical and financial evaluations. For 36 plants where only a single bid was received, those bids were accepted directly. For the remaining 31 plants, an e-reverse auction was conducted, leading to tariff discoveries as low as ₹2.25 per kWh, with most bids settling around ₹3.00 per kWh.

The GERC, in its order dated April 8, 2025, approved the adoption of tariffs discovered through this transparent bidding process following Section 63 of the Electricity Act, 2003. The tariffs ranged between ₹2.25 and ₹3.05 per kWh, depending on the bid outcomes and auction rounds. The Commission also approved the draft Power Purchase Agreements (PPAs) to be signed with the successful bidders, which will be valid for 25 years from the commercial operation date of each project.

The projects will be implemented under the RESCO model, where developers will be responsible for the design, supply, installation, testing, commissioning, and operation and maintenance of the plants. All solar components, including PV modules and inverters, must comply with MNRE guidelines and be domestically manufactured. The power generated will be supplied to 11 kV feeders from the associated substations.

Under the scheme, MNRE provides Central Financial Assistance (CFA) of ₹1.05 crore per MW, released in three installments upon meeting project milestones. The CFA will be distributed via the DISCOMs to the project developers after verification of progress and performance. Strict conditions are imposed to ensure that developers do not sell power to any party other than DGVCL. If such violations occur, the CFA granted will be recovered.

The GERC noted that the project aligns with national policy objectives to promote decentralized renewable energy for agricultural use. The Commission emphasized timely execution, adherence to guidelines, and strict monitoring for project success.

This order clears the way for solarizing a major portion of agriculture feeders in southern Gujarat, ensuring clean and affordable electricity for farmers while helping the state meet its renewable energy targets under the PM KUSUM Scheme. The successful implementation of this initiative is expected to enhance energy access in rural areas and reduce the burden on conventional power sources.