GERC Seeks Consultants To Determine Banking Charges For RE Projects

GERC Seeks Consultants To Determine Banking Chargers For RE Projects

The Gujarat Electricity Regulatory Commission (GERC) has now planned to impose banking charges against the generation of renewable energy in the state. To undertake the mission, the state commission has floated a tender seeking bids from consultants who can help the state commission in imposing the charges.

The GERC, in its document mandated the consultants to formulate the methodology to calculate the banking charges in the state based on the generation, demand and economy. This comes days after the notification of the Gujarat Renewable Energy Policy 2023. The policy bats for imposing banking charges.

“ Under this Policy, the Government of Gujarat contemplated the levy of Banking Charges. The Government of Gujarat also casted responsibility of determination of Banking Charges from time to time in a cost reflective manner taking into account the cost implication for Distribution Companies in providing banking facility, on GERC. It is further envisaged in the Policy that Banking Charges need to be determined on monthly/ quarterly basis based on the details/ information of the previous month/ quarter,” the bid document said.

It also added, “In view of the above and to take a holistic view on banking of renewable energy, the Commission decides to seek assistance from consultancy firms for determination of methodology for calculation of Banking Charges leviable from the Renewable Energy Consumers of the State of Gujarat keeping in mind the overall economic development and investment in the State.”

The GERC expect the consultants to analyse the technical and financial impact of banking of renewable energy on the grid and discoms of the state. It is also expected that the firms will analyse the banking provisions in various states besides doing other businesses. 

As per the schedule prepared by the GERC, the consultants will have to submit a detailed concept paper and preliminary analysis report within 15 days from the date of signing the agreement and alsol submit a study report to the Commission within 30 days. It also mandates such firms to submit the discussion paper for the determination of methodology for calculation and imposition of banking charges within 7 days after receiving the comments from the office of the Commission on the study report.