Indian state of Gujarat may cut solar feed-in tariff

08. July 2013 | Global PV markets, Markets & Trends | By:  Edgar Meza

Gujarat's utility company is recommending a reduction in the tariff rate it pays for solar power from the current price of US$0.21 a kilowatt hour to about US$0.15.

Canal PV plant in Kadi, Gujarat

Since 2010, Gujarat's state-owned utility has signed 88 contracts for a total of 971.5 MW of solar capacity.

In India's Gujarat state, solar plant owners may be getting too much of a good thing.

The local utility company in the state, a solar power hub that is home to about 50% of the country’s solar capacity, is looking to reduce tariff rates for projects, citing the excessive profits earned by solar plant owners.

State-run utility Gujarat Urja Vikas Nigam Ltd. (GUVNL), which buys solar power, has submitted a petition to government regulators to cut the rates due to the "unjustified and windfall gains" by plant owners, according to Bloomberg News.

GUVNL proposes lowering the feed-in tariff from the current average price of INR 12.54 ($0.21) a kilowatt hour over 25 years to about INR 9 ($0.15), which it described as "reasonable and prudent tariff."

Since 2010, GUVNL has signed 88 contracts for a total of 971.5 MW of solar capacity with developers, among them Adani Enterprises, Moser Baer India, Tata Power and Welspun Energy, Bloomsberg reported.

Regulators are scheduled to hold the first hearing on the petition on July 23.


To leave a comment you must first sign in or register your details

No comments

No comments have been submitted yet. Why not login or register and be the first?

Subscribe today!

Choose between a digital and print subscription from pv magazine publisher Solarpraxis AG’s online shop!

Press releases

Want to publish your press releases for free? Simply log in or register, enter the information you want to appear and we'll publish it for you!