The Gujarat Electricity Regulatory Commission is reviewing a petition from Gujarat Urja Vikas Nigam Limited to approve a tariff for a new solar power project. The petition, filed on August 8, 2025, seeks the adoption of a tariff of ₹2.60 per unit for electricity purchased from solar photovoltaic projects. This tariff was discovered through a competitive bidding process, specifically a reverse e-auction, for a total capacity of 500 megawatts. The project includes a base capacity of 250 megawatts and an additional 250 megawatts under a Greenshoe option. This tender is part of GUVNL’s Phase XXVI solar procurement, which began on January 18, 2025.
Ten companies initially participated in the bidding process, submitting proposals for a total of 1,330 megawatts. After a technical and commercial evaluation, all ten bidders were found eligible to continue. When the financial bids were opened, the highest bidder, Prozeal Green Energy Limited, with a quoted tariff of ₹3.51 per unit, was eliminated from the process. The remaining nine bidders qualified for the reverse auction stage.
During the e-reverse auction, the lowest tariff of ₹2.60 per unit was discovered. Three companies emerged as successful bidders. Welspun Renewable Energy Private Limited secured 50 megawatts, Avaada Energy Private Limited won 100 megawatts, and SAEL Industries Limited obtained 100 megawatts. After the Greenshoe option was exercised, these companies received additional capacity at the same tariff. This brought Welspun’s total allocation to 100 megawatts, Avaada’s to 200 megawatts, and SAEL’s to 200 megawatts. All the allocations were finalized at the rate of ₹2.60 per unit.
GUVNL has already issued Letters of Intent to the successful companies. The petition to the regulatory commission is a necessary step to formally adopt the discovered tariff under the provisions of the Electricity Act of 2003. Such approval processes are intended to ensure transparency in the state’s power procurement. The utility also pointed out that this tariff is competitive compared to prices discovered in recent solar tenders by other state and central agencies.
The low tariff has been attributed in part to recent amendments in the Approved List of Models and Manufacturers Order related to solar photovoltaic cells. GUVNL highlighted that the project supports Gujarat’s ongoing renewable energy goals and aligns with the state’s plans to supply affordable electricity to agricultural consumers through the Kisan Suryoday Yojana. This scheme aims to provide daytime power to farmers for irrigation purposes, and cost-effective solar tariffs help reduce the financial burden of supplying such power.
The 500-megawatt procurement under Phase XXVI represents another step in Gujarat’s strategy to expand renewable energy capacity while keeping electricity affordable. The outcome of the GERC’s review will determine whether the proposed tariff becomes officially approved, enabling the projects to move forward as planned. The decision will also reflect the competitive nature of solar power pricing in the state and the commitment to meeting clean energy targets through structured and transparent bidding processes.
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