The Gujarat Electricity Regulatory Commission recently reviewed a petition filed by Paschim Gujarat Vij Company Limited (PGVCL), requesting the approval and adoption of tariffs discovered through a competitive bidding process. This initiative is part of the central government’s PM-KUSUM-C Feeder Level Solarization (FLS) scheme, aiming to enhance solar energy penetration at the feeder level across Gujarat. The bidding process was conducted by PGVCL dated 29th February 2024, with a plan to install 125 solar plants with a cumulative capacity of 276 MW under the RESCO model.
Under the PM-KUSUM scheme, which is supported by the Ministry of New and Renewable Energy (MNRE), Government of India, PGVCL has identified various 11 kV feeders for solarization to promote the usage of green energy and reduce the dependency on conventional sources. The petition also includes a request to approve the draft Power Purchase Agreements (PPAs) to be signed with the successful bidders at the discovered tariff rates.
As per the order dated 5th April 2025, PGVCL submitted a list of 30 successful bids from different developers who agreed to set up the solar projects at tariffs ranging between ₹2.13 to ₹3.00 per kWh. Some of the notable developers include Uratom Solar (India) Pvt. Ltd., Gensol Engineering Limited, Raycal Power Infra Pvt. Ltd., Raynex Power Solution Pvt. Ltd., Windson Global Pvt. Ltd., and many others. Gensol Engineering emerged as a leading participant with multiple bids and capacities in different feeder locations. The company offered tariffs in the range of ₹2.57 to ₹2.78 per unit for their allotted projects.
Among the bids, the lowest tariff quoted was ₹2.13 per kWh by Suntrac Solar, while the highest was ₹3.00 per kWh quoted by multiple developers, including Uratom Solar and Raynex Power Solution. This spread in tariff rates reflects the geographical and operational diversity of the projects and the willingness of smaller and larger players to participate in this green energy initiative. Other notable developers like Powertrac Industries and Onix Trans Energy also participated and were awarded significant capacities with competitive bids.
The Commission reviewed the bidding process and confirmed that it was conducted fairly and transparently, adhering to the guidelines laid down by the MNRE for the PM-KUSUM scheme. After thorough verification of the documents, bid evaluations, and tariff reasonableness, the Commission decided to adopt the tariffs for the 30 solar projects under the FLS initiative. The Commission also approved the draft Power Purchase Agreements, authorizing PGVCL to proceed with signing them with the successful bidders.
This initiative is a big step toward achieving Gujarat’s renewable energy targets and supporting farmers through decentralized solar generation. It is also expected to enhance feeder-level energy supply reliability and reduce transmission losses, benefiting both the utility and consumers. By implementing such projects, PGVCL aims to reduce its carbon footprint while promoting sustainable development.
With this regulatory approval in place, PGVCL is now set to move forward with issuing Letters of Award (LoAs) and commissioning the identified solar plants. The successful implementation of this phase will not only strengthen Gujarat’s solar infrastructure but also serve as a model for other distribution companies across India to replicate under the PM-KUSUM scheme.
