Gujarat government announces Gujarat Renewable Energy Policy 2023

Gujarat has introduced its renewable energy policy with a primary emphasis on harnessing the state’s substantial potential of 36 GW in solar and 143 GW in wind capacity. The policy aims to facilitate development of 100 GW of cumulative renewable energy capacity by 2030 with investments of around Rs 5,000 billion by utilising approximately 400,000 acres of land.  This initiative aims to facilitate a cost-effective and reliable power supply. This policy will remain in effect until September 30, 2028, and it will cover various types of renewable energy projects. These include ground-mounted solar, rooftop solar, floating solar, canal-top solar, wind, rooftop wind, and wind-solar hybrid initiatives. This policy is in alignment with the national goal of reaching 50 per cent of the total installed electric power capacity from non-fossil fuel sources by the year 2030.

For renewable energy projects exempted from competitive bidding process, distribution companies (discoms) have the authority to procure electricity from distributed solar projects and small-scale wind power projects with capacities of maximum, 4 MW and 10 MW, respectively, at a pre-established, fixed levelised tariff. This tariff rate will remain consistent for the entire 25-year term of the power purchase agreement (PPA). The developer is required to submit a bank guarantee when discoms procure power under PPA. While for renewable projects established for captive use or third-party sale, the project developer is required to provide a bank guarantee in accordance with the approved connectivity procedure determined by GERC. This guarantee must be submitted to the state transmission utility or discom, as applicable.

Under this policy, consumers will have the opportunity to install small-scale rooftop wind projects, with the choice of either net metering or gross metering. Additionally, the policy aims to support wind turbine generator (WTG) manufacturers and renewable energy developers in setting up prototype WTGs, not limited to offshore wind projects. Furthermore, the policy facilitates the conversion of existing wind power plants or standalone wind or solar power facilities into hybrid projects. Residential customers using solar power will not incur any banking charges, while other customers will be subject to banking charges determined by GERC.