Despite finding that developers are willing to sell as much as Rs 1.99 per unit, the Gujarat government has purchased more than 6,200 million units of solar at a price of between Rs 9.13 and Rs 15 per unit from independent energy producers over the past five years.
The data, presented by the national government in the newly completed budget process of the state legislature, shows that between April 2015 and March 2020, Gujarat purchased solar power for a total of 61 independent players under the 2009 Solar Power Policy. NGOs, 38 sold power in Gujarat for Rs 15 per unit, while the remaining 23 players sold for Rs 9.13 to Rs 13.59 per unit.
In addition to the 6,200 billion units of solar energy, the national government has purchased another 573 million power units from 61 identical players from April to September 2020, the government said in its written reply to a stellar question posed by Congress MLA Chotta Udepur, Mohansinh Rathwa.
The Gujarat government buys power from various organizations through Gujarat Urja Vikas Nigam Limited (GUVNL).
During this five-year period, solar energy was purchased from Adani Power Limited, which sold 328 million units for Rs 15 per unit. There was a 10.2 percent increase in the amount of energy purchased from the Adani group.
The government has purchased more than $ 200 million worth of energy at R15 million per unit from private companies including Tata Power Renewable Energy Limited (210 million units), GMR Gujarat Solar Ltd (200 million units), Lorox BioEnergy Ltd (208) million units), Roha Dyechem Pvt Ltd (209 million units), and Alex Astral Power Pvt Ltd (207 million units).
Only 14 million units were purchased from Texas Infrastructure and Project Pvt Ltd, sold for Rs 9.13 per unit – a very cheap power for 61 players.
Experts in the electricity sector in Gujarat say that although the price of solar energy has dropped dramatically, the government has continued to pay 2010 prices to private companies. For example, at an auction of 500 MW of solar projects run by GUVNL in December 2020, Rs 1.99 per unit was a very low bid. GUVNL officials said the national government pays Rs 15 per unit in terms of the 2010-11 power purchase agreement.
“There are High Court decisions related to our PPAs that can be reopened. In addition, in terms of renewable resources, it is mainly the single investment that companies need to be able to repay, ”said a GUVNL official.
Source: The Indian Express