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The Gujarat Electricity Regulatory Commission (GERC) is set to introduce a new tariff framework for the procurement of power from wind power projects in the state. This move comes as part of the Commission’s efforts to promote renewable energy sources and ensure a competitive market for electricity procurement.
In the past, GERC had issued generic tariff orders for procurement of power from wind power projects, with control periods up to March 2019 and March 2022 respectively. However, with the changing landscape of renewable energy policies and regulations, the Commission has decided to adopt a new approach.
Under the proposed tariff framework, distribution licensees will be mandated to procure power from wind power projects through competitive bidding routes. This shift from the generic tariff determination regime aims to discover the most competitive prices for wind energy procurement.
The Ministry of Power had recently notified the Electricity (Promoting Renewable Energy Through Green Energy Open Access) Rules, 2022, which outline policy and regulatory provisions for promoting renewable energy sources through open access. The Commission has decided to align its tariff framework with these rules, which came into effect from June 6, 2022.
The proposed control period for the new tariff framework is from June 6, 2022, to March 31, 2027. Wind power projects commissioned during this period will be governed by the regulatory provisions outlined in the new framework.
For wind power projects falling below the threshold limit of eligibility for participating in competitive bidding, the Commission has proposed two options for determining the tariff. The tariff could either be based on the weighted average tariff discovered through competitive bidding in the previous six months or determined by the Commission under Section 62 of the Electricity Act, 2003.
The tariff framework also addresses various other aspects such as energy banking, settlement of banked energy, sharing of CDM benefits, and interconnection requirements for wind power projects. Additionally, it specifies the norms for wheeling of power and treatment of un-utilized surplus banked energy.
The Commission has taken into account the renewable purchase obligations (RPO) targets specified for obligated entities, which include distribution licensees, captive users, and open-access consumers. These targets mandate the purchase of electricity from renewable energy sources, with the option to use Renewable Energy Certificates (REC) for compliance.
In its effort to ensure transparency and stakeholder engagement, GERC has invited comments from potential stakeholders on the proposed tariff framework. A public hearing is scheduled to be held on April 5, 2024, at the GERC’s office in Gandhinagar, where stakeholders can provide their feedback and suggestions.
Overall, the proposed tariff framework signals a shift towards a more competitive and transparent procurement process for wind energy in Gujarat. By aligning with national and state-level renewable energy policies, GERC aims to facilitate the growth of the renewable energy sector and contribute to the state’s sustainable development goals.
Please view the document here for more details.
