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New Investor-friendly Tariff Structure for Gujarat Solar Energy Generation

Tuesday, July 28, 2009 Leave a Comment

An interesting development has happened for all the people concerned with Solar Energy. Inspite of current downturn in world economies, Gujarat Electricity Regulatory Commission (GERC) has now proposed an increased tariff for procurement of energy from Solar resources. Below is the new tariff structure.

Generation Technology
Tariff per kwh (First 12 years)*
Tariff per kwh (13th to 25th year)*
Solar PV
INR. 14 / USD 0.29
INR 4.0 / USD 0.08
Solar Thermal
INR 10 / USD 0.20
INR 3.5 / USD 0.07

*All the distribution licensees and other buyers will have to procure power at the above mentioned tariffs.
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. According to solar experts, the cost of solar power generation may vary from INR 13 to INR 18 per kwh depending upon cost and location of the project.
This would provide a great impetus for solar companies planning to enter in India and especially Gujarat for setting up power plants. Recently Astonfield Solar (Gujarat) Pvt Ltd had approached Gujarat power regulators for their 25 MW solar PV plant with a proposed tariff of INR. 19.92 per kwh. This would help them to increase their Internal Rate of Return from the project faster than previous tariff schedule.


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