Gujarat Approves Solar Tariffs for 154 MW Under PM-KUSUM to Empower Farmers with Clean Energy – EQ
In Short : The Gujarat Electricity Regulatory Commission has approved tariffs between ₹2.12 and ₹3 per kWh for 154 MW of solar projects under the PM-KUSUM scheme. These projects, initiated by UGVCL, aim to solarize agricultural feeders, promoting clean energy for farmers. With a weighted average tariff of ₹2.45/kWh, UGVCL can now sign power purchase agreements with successful bidders.
In Detail : The Gujarat Electricity Regulatory Commission (GERC) has approved tariffs for 154 MW of solar projects proposed under Component C of the PM-KUSUM scheme. These projects were initiated by Uttar Gujarat Vij Company Limited (UGVCL) as part of the state’s push to expand solar energy use in the agricultural sector.
UGVCL had earlier invited bids for 170.5 MW of solar capacity, with a ceiling tariff set at ₹3 per kilowatt-hour. After evaluation and negotiations, 86 bids were finalized, totaling 154 MW of capacity. The tariffs submitted ranged from ₹2.12 to ₹3 per kilowatt-hour, reflecting strong interest from solar developers.
The weighted average tariff for the selected projects stood at ₹2.45 per kilowatt-hour. These competitive rates signal increased efficiency and cost-effectiveness in Gujarat’s solar energy procurement under the KUSUM program. The regulator’s approval of these tariffs is expected to facilitate faster implementation of the awarded projects.
With the tariff approval in place, UGVCL can now proceed to sign power purchase agreements (PPAs) with the successful bidders. These agreements will secure the long-term supply of solar power and ensure financial viability for both the utility and the project developers.
The solar installations under Component C are focused on solarizing 11 kV feeders that power agricultural pumps. This initiative will provide farmers with reliable daytime electricity, reduce reliance on diesel or grid-based power, and promote the use of renewable energy in farming operations.
This move aligns with Gujarat’s broader strategy to expand its renewable energy footprint and supports the central government’s aim of making agriculture more sustainable. The PM-KUSUM scheme continues to be a key driver in this transition, enabling clean, decentralized power generation at the grassroots level.
