In a bid to hasten the solar power generation in the state, Gujarat Urja Vikas Nigam Limited (GUVNL), which is responsible for power will soon enter into a power purchase agreement (PPA) with solar project developers in Gujarat.
The process will start from next month, where Gujarat Energy Development Agency (GEDA), the state nodal agency for renewable energy certificates (REC), will sign memorandum of understandings (MoUs) with several project developers. The agency will be responsible for studying different proposals, which will be based on developers’ financial and technical capabilities. The initiative has garnered good response and big developers like Welspun Energy, Phoenix, Virat, Agrawal Infratech, Unicorn and Paragon are interested in signing up.
Welspun Energy has expressed interest in expanding its presence in Gujarat and will sign MoUs for 100 MW. Biggies like Adani and Essar groups are also expected to join the queue.
The state is expected to offer almost Rs 2.64 per unit to solar project developers, who will draw additional revenues from trade of REC. Similar PPA proposals were announced a couple of years back and they did not receive the utmost response. But looking at how the image of solar energy has changed in the country, this could be a smart move from the state.
