PM-KUSUM: Gujarat Discom Gets The Lowest Tariff of Rs 2.15/kWh

PM-KUSUM: Gujarat Discom Gets The Lowest Tariff of Rs 2.15/kWh

The Gujarat Electricity Regulatory Commission (GERC) has now approved the tariffs for Component-C of the PM-KUSUM scheme. Earlier, Madhya Gujarat Vij Company Limited (MGVCL) had approached the state electricity regulator seeking to adopt the tariffs. These tariffs were discovered through a tariff-based competitive bidding process.

Earlier, a tender was floated by MGVCL seeking parties who could take up the work of solarizing grid-connected solar pumps under the scheme. As per the information furnished by MGVCL, a total of 33 bids were selected, as quoted by different players.

Lowest discovered tariff 

The discom was able to discover its lowest tariff of Rs 2.15/kWh, quoted by PNV Energy. It also recorded a tariff of Rs 2.25/unit, quoted by Pioneer Security. On average, it was able to discover tariffs in the range of Rs 2.15/unit to Rs 3/unit for the project.

The tender earlier talked about undertaking the work under the Centre’s PM-KUSUM scheme. It mandated developing the project on a RESCO model. These decentralized plants were supposed to be associated with the 11 KV line. The tender also mandated linking the Remote Monitoring System to the solar power plant. MGVCL had planned to install 80 solar plants, which can collectively cover an average of 99,740 grid-connected consumers with a contracted load of up to 7.5 HP.

Ardous tendering process 

While the last date for bid submission was January 25, 2024, the deadline was extended 10 times to attract more responses. MGVCL said the price bid was opened for 121 eligible bids from 34 bidders across 39 solar plants. After financial evaluation, all 121 bids from the 34 bidders were found qualified for the tender process.

The GERC, while adopting the tariffs, asked the agency to make public the list of all the bidders and their quoted/negotiated tariffs.

“We decide to adopt the tariff discovered/negotiated under the transparent competitive bidding process conducted by the Petitioner…We also direct the Petitioner that for the purpose of transparency, after execution of the PPA, publicly disclose the name of the successful bidder(s) and the tariff quoted/negotiated and agreed by them together with the breakup with the component, for 30 days on its website,” the GERC order read.