Solar Energy in Gujarat

Some Aspects of Regulatory Decision-making

Dr. P. K Mishra
Chairman
Gujarat Electricity Regulatory Commission

Forum on Clean Energy, Good Governance and
Electricity Regulation
20-21 May 2010
Cape Town, South Africa



Gujarat State: Some Features
An area of 1,96,000 sq.km.
and a population of 56
millions

Per capita net state
domestic product in 2008-
09: Rs. 49,251
(per capita net national
product Rs. 40,141)

Per capita consumption of
electricity in 2007-08: 1424
kWh (national average 717
kWh)

Power Sector of Gujarat
Total installed capacity (including central
sector share) 12,258 MW
Coal - 5839 MW ( 47.63 %)
Gas - 3821 MW (31.17 %)
Lignite - 1040 MW (8.48 %)
Atomic - 559 MW (4.56 %)
Oil - 220 MW (1.79 %)
Hydro - 779 MW (6.36 %)


Power Sector of Gujarat (Cont.)
Installed capacity of wind power 1790 MW

Captive Power Plant (Grid Connected) - 3033 MW

Captive Power Plant (Off the Grid) 2531 MW

Larger potential for solar power
300 days of clear sun
Solar radiation 5.6 - 6 kWh per sq.mt. per day

Earlier Initiatives for Solar Energy in Gujarat
Some efforts in 1970s
Creation of Gujarat Energy Development Agency (GEDA)
in 1979
Schemes targeting individuals, communities, institutions,
and sectors such as agriculture and industry
Stand-alone solar home light systems in 85 hamlets
Solar street lights in municipal towns
Solar Photovoltaic systems for uninterrupted power for
milk testing in 190 milk collection centres in rural areas
Recently, roof-top solar systems on government office
and residential buildings



Use of Solar Energy during the last Five Years

Item/system Unit Achievement Families
Covered
Solar Cookers (Domestic) Nos 66593
66593
Solar Cookers (Steam Cooking for Institutions) Nos 16
Solar Water heaters (domestic) Lpd 471600
2000
Solar Water heaters ( Institutional) Lpd 253000
Solar Home light Systems Nos 10046
10046
Solar Street light Systems Nos 3366
Solar Power Plants ( Grid Connected) 10 kW
each Nos. 170
Solar Power Plants ( Stand Alone), 1 kW each Nos. 125
125
Solar Wind Hybrid (Stand Alone), 5 nos. kW 30
Solar Power Pack, 450 W each Nos. 190
Solar Street lights for Municipal towns Nos. 1750
Solar Pumps ( 2 hp each) Nos 66
Source: GEDA
Policy and Legal Framework
Government of Gujarat policy of 2001
Electricity Act 2003 and the relevant rules
National Electricity Policy and Tariff Policy
Scheme of grid interactive solar power generation
projects of MNRE 2008
GERC tariff order of 22 January 2009 (for the purpose
of the MNRE scheme)
CERC Regulations of 2009 on Renewables
Government of Gujarat Solar Power Policy 2009
Jawaharlal Nehru National Solar Mission
GERC tariff order of 29 January 2010
GERC Regulations on procurement of energy through
renewable sources 2010


Some Aspects of GERC Tariff Order of
29 January 2009
A single-part generic levelized tariff
Tariff for solar PV: Rs. 15 per kWh for initial 12
years and Rs.5 per kWh for the next 13 years
Tariff for solar thermal power projects: Rs.11
and Rs.4 per kWh respectively for the first 12
years and the next 13 years.
Tariff order also addresses technical and
commercial issues such as transmission,
wheeling charges, security deposit, sharing of
CDM benefits etc.
Process of Regulatory Decision-making
Discussion paper and inviting views of the
stakeholders
Public hearing
Analysis of technical and financial parameters
Consideration of provisions of various Acts, rules
and policies such as Electricity Act 2003, CERC
Regulations, Government of Gujarat Solar Policy etc.
Brainstorming session with experts and stakeholders
GERC (Procurement of Energy from Renewable
Sources) Regulations 2010 envisaging solar power
purchase obligation from 0.25 to 1% during 2010-11
to 2012-13
Issues Addressed during the Process of
Regulatory Decision-making
How to balance incentives to investors with protection
of the interests of consumers for affordable electricity
Impact of solar tariff on Annual Revenue Requirement
of licensees
Sustainability of solar power projects, so that there is
no reneging of agreement
Problem of inadequate and asymmetric information
GERC tariff vis-`a-vis tariff determined by CERC and
tariff indicated in Gujarat Government Solar Policy
Adequacy of consultation with stakeholders and
synthesis of divergent views
Some Reflections
Gujarat has taken significant initiatives in the past to
harness solar energy
GERC is the first State Regulatory Commission to issue a
comprehensive tariff order on solar energy
GERC is the first SERC to provide for Renewable Energy
Certificates in its Regulations on procurement of energy
from renewable sources
GERC tariff appears to be lower than what was expected by
potential investors at the national level; however;
17 Power Purchase Agreements for 234 MW have been
signed till 7 May 2010
11 more such PPAs for 211 MW are likely to be signed by
end of this month


Thank you