GERC (Gujarat) Proposes Tariff for Solar Projects

The Gujarat Electricity Regulatory Commission (GERC) in a draft notified earlier this month has proposed tariff for the solar projects. The Tariff proposed in the Discussion Paper will be applicable to the projects commission during July 1, 2015 to March 31, 2018. The commission through a separate public notice has invited comments and suggestions from the interested stake holders by 22nd June 2015.

The details of the tariffs proposed are in the table below:

Below is the graph for comparison between tariffs of CERC and GERC for previous years:

Wheeling Charges:

  • For Injection at 66 kV voltage level and above, transmission charges as applicable to normal open-access customers and transmission and wheeling loss @ 7% of the energy fed into the grid.
  • For Injection at 11 kV or above and below 66 kV, wheeling in the area of the distribution licensee will be allowed on payment of distribution loss @ 3% of the energy fed in to the grid. In the other case of wheeling within the State but in the area of a different distribution licensee will be allowed on payment of transmission charges as applicable to normal Open-Access Customers and transmission and distribution loss @ 10% of the energy fed in to the grid.

Cross subsidy Charges: As a promotional measure for solar power no cross-subsidy surcharges would be levied in case of third-party sale.

It is worth noticing that GERC had calculated its tariffs back in 2012 for coming years I.e. FY 13, FY14 & FY 15, while CERC revises its tariffs every year. The difference visible between tariffs of CERC and GERC for previous years is because the GERC hasn’t revised its tariff after 2012 and it is that period during which the capital cost of the solar modules fell drastically and so the difference didn’t reflect on the tariffs of GERC as it wasn’t revised.

Now the GERC has proposed new tariff which is quite lower (approx. 5.5%) than the tariff finalized by the CERC. A public hearing on the matter will take place on 29th June 2015.

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