By Sakshi Bansal
Gujarat has positioned itself as a pioneer in the renewable energy space. Leveraging its extensive coastline, ample solar radiation and wind resources, the state has effectively utilised natural elements to meet its energy requirements in a sustainable manner. Gujarat is home to the second-largest solar power capacity in the country after Rajasthan. Overall, it constitutes roughly 14.5 per cent of India’s renewable energy portfolio. As of April 2024, the state had 27.8 GW of the total installed renewable energy capacity, comprising around 11.7 GW of wind power (the highest in the country), 13.8 GW of solar power, 1,990 MW of large hydro and a small capacity of biomass (112.5 MW) and small-hydropower (91.64 MW).
Currently, wind and solar energy constitute the primary sources of renewable power in the state. Nevertheless, Gujarat is proactively broadening its array of sustainable energy sources by exploring emerging sectors such as green hydrogen. According to a statement by Gujarat’s chief minister, Bhupendrabhai Patel, the state is actively partnering with the central government to position itself as the world’s “green hydrogen capital”. For this, an incentive scheme, the Aatmanirbhar Gujarat Scheme for Assistance to Industries, has been pioneered, which is designed to boost green hydrogen projects. The state’s strategic efforts also encompass the development of the complete value chain for green hydrogen. The state boasts ample renewable energy sources crucial for green hydrogen production. Furthermore, Gujrat’s long coastline means that the state can desalinate seawater that can be used for the production of green hydrogen. This is key as the state has initiated its green hydrogen mission with the objective of generating 3 million metric tonnes per annum (MMTPA) of green hydrogen by 2030.
Renewable Watch looks at some of the recent developments in the renewable energy sector of Gujarat and highlights the outlook for renewable energy expansion in the state….
Recent developments: Commissioned projects, auctions, tender bids and plans
The past few months in Gujarat’s renewable energy space have been quite eventful, owing to a slew of commissioned projects, auctions, tender bids and companies announcing key plans and MoUs.
Commissioned projects
In April 2024, Juniper Green Energy announced the commercialisation of its first 70 MW wind power project. In March 2024, Adani Green Energy Limited successfully initiated a total solar energy capacity of 1,000 MW (out of 30 GW) at the Khavda Renewable Energy Park in Gujarat. Overall, the Adani Group pledged to generate 30 GW of renewable energy at Khavda and invest Rs 2 trillion in the state for more than five years.
Furthermore, NTPC Renewable Energy Limited declared commercial operation of its first project of 50 MW wind at Dayapar in Gujarat in November 2023. Moreover, NTPC Green Energy Limited entered into MoUs with Gujarat State Petroleum Corporation Limited (GSPC) and Gujarat Pipavav Port Limited for blending of green hydrogen in the gas networks of GSPC and promotion of green hydrogen mobility by setting up green hydrogen fuelling stations in Gujarat.
Auctions
In March 2024, Gujarat Urja Vikas Nigam Limited’s (GUVNLs) auction for 1,125 MW of grid-connected solar power projects (to be set up in Gujarat State Electricity Corporation Limited’s [GSECL] renewable energy park at Khavda, Stage 3) saw successful bids from five companies. The winners in this auction included Solairecraft (Engie) with 200 MW by quoting Rs 2.62 per kWh, and NTPC Renewable Energy Limited with 225 MW by quoting Rs 2.67 per kWh. Other companies won the following capacities: NHPC 200 MW, JSW Neo Energy 300 MW and SJVN Limited 200 MW, by quoting Rs 2.66 per kWh.
In the same month, GUVNL’s auction to develop pilots of 250 MW/500 MWh stand-alone battery energy storage systems projects, Phase II, saw successful bids from Gensol Engineering that won 70 MW/140 MWh by quoting Rs 448,996 per MW per month. Meanwhile, Indigrid 2 won 180 MW/360 MWh by quoting Rs 449,996 per MW per month.
In another auction held by GUVNL in January 2024, to develop 500 MW of grid-connected wind-solar power projects, KPI Green Energy and Juniper Green Energy won 50 MW and 150 MW by quoting Rs 2.99 per kWh and Rs 3.04 per kWh respectively. The project was tendered with the opportunity to expand the capacity by a further 500 MW under the greenshoe option. In the same month, results were announced for the GUVNL auction to develop 600 MW of grid-connected solar power projects, Phase XXI. The project was tendered with an additional greenshoe option of 600 MW. By quoting Rs 2.54 per kWh, SJVN Green Energy won 100 MW. SAEL Industries and Coal India won 200 MW and 300 MW respectively, by quoting Rs 2.55 per kWh.
Tender bids
In February 2024, GUVNL issued a tender to procure power from 500 MW grid-connected wind-solar hybrid projects, Phase II, with an additional 500 MW greenshoe option. In the same month, Gujarat Industries Power Company Limited issued a tender for an engineering, procurement and construction package, including land for up to 500 MW solar projects in the state.
Plans and MoUs
In February 2024, Erisha E Mobility announced plans to invest Rs 50 billion in Gujarat to establish a green hydrogen ecosystem using clean energy sources. Further, Juniper Green Energy and the Gujarat government have signed an MoU to set up 1,000 MW of wind and solar projects within the state, involving a significant investment of Rs 80 billion. Additionally, the Avaada Group and the Gujarat government have signed an MoU to develop 6,000 MW of wind-solar hybrid projects in various districts of Gujarat, at a financing of Rs 400 billion. Meanwhile, ENGIE and the Gujarat government have signed MoUs to initiate greenfield establishment of 2.5 GW of clean energy projects at different sites in Gujarat by 2030, at an investment of Rs 172 billion. Furthermore, Tata Power Renewable Energy Limited has signed an MoU worth Rs 700 billion to develop 10 GW of hybrid renewable energy projects in Khavda in Kutch, Dholera and Banaskantha.
The state is also attracting more investments in the manufacturing sector due to its favourable policy framework and strategic location near ports. During the 10th Vibrant Gujarat Summit held in January 2024, Reliance Industries announced its plans for a 5,000 acre green complex at Jamnagar and a carbon fibre facility at Hazira in Gujarat. The Tata Group plans to begin the construction of a 20 GW lithium-ion storage battery factory in Gujarat’s Sanand city soon.
Policies and regulations
The Gujarat Electricity Regulatory Commission (GERC), in February 2024, introduced the GERC (Terms and Conditions for Green Energy Open Access) Regulations, 2024, which now incorporate guidelines for banking and various open access charges applicable to consumers utilising green energy open access (GEOA). The guidelines will be applicable to electricity generated through the open access model using green energy sources. This includes energy derived from non-fossil fuel-based municipal solid waste-to-energy projects, intended for utilisation within the intra-state transmission and distribution systems. These regulations aim to streamline the process of GEOA for consumers, generators and licensees within the state. The guidelines are relevant to individuals seeking GEOA with a contracted demand or sanctioned load of a minimum of 100 kW. This encompasses consumers, generators of green energy or licensees with either single or multiple connections, totalling 100 kW or more within the same electricity division of a distribution licensee.
The way forward
Gujarat is rich in opportunities for renewable energy growth and has been leading India’s renewable energy transformation. Leveraging its abundant natural resources and supportive policies, the state has emerged as a prominent player in the renewable energy industry.
While the state is progressing positively and has diversified its investments across various renewable energy sources, it needs to prioritise comprehensive planning and flexible strategies. This approach will ensure successful project execution and address unforeseen challenges such as issues with land acquisition for wind turbines and associated infrastructure, disputes over compensation rates, unclear local landownership records, inadequate infrastructure for managing intermittent energy production, regulatory and environmental obstacles including the Great Indian Bustard issue, supply chain disruptions and local resistance affecting construction timelines.
Overall, with a sustained development momentum and necessary policy interventions, Gujarat is poised to emerge as a global hub for renewable energy, especially given its significant offshore wind potential that the state is yet to tap.
