Gujarat’s request to lower solar cost rejected

Solar Power Energy

Ahmedabad: Gujarat Power Regulating Commission has refused a request by Gujarat Urja Vikas Nigam Ltd to lower cost compensated to solar power manufacturers. Gujarat, home to more than half of India’s solar power tasks, has seen designers claim against the suggested reducing of prices because that would effect financial commitment in the industry.

The local govt is likely to attraction the Thursday order at the Apellate Tribunal for Power, an formal said, inquiring privacy. “When private power manufacturers can strategy regulating regulators for way up modification in cost to protect their financial failures due to fossil fuel price rise, the local govt too had a right to strategy the regulator to protect the individuals’ interest,” the formal said.

In the case of heat energy tasks, charges are identified through a putting in a bid process, but with solar power manufacturers, the local govt declared a so-called levelized rate, based on which designers set financial commitment plans, a manufacturer said. He talked on condition that neither he nor his company is known as.

Gujarat’s committed solar energy policy, set down in 2009 ahead of the national solar energy objective, targeted to install a potential to generate 1,000MW through sunshine. State-run Gujarat Urja Vikas Nigam, the large buyer, finalized power-purchase contracts with 88 solar energy designers for an installed potential of 971.5MW, gaining investment strategies close to Rs.15,000 crore.

The condition had provided a cost of Rs.15 per kw time for the first 12 years and Rs.5 a device from then to the Twenty fifth year for solar energy tasks. Manufacturers say the prices can only be changed through common approval or if the tasks are not applied in time.

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