Gujarat's retroactive FiT cuts case reopened by appeal - report

Nov 7, 2013 - The Gujarat Electricity Regulatory Commission has accepted an appeal against its decision to turn down a petition for retroactive cuts to the feed-in tariff (FiT) for solar parks in the state, Bloomberg said today.

The power regulator will hear the case on Monday, the business news provider said, citing Hemant Sahai -- a lawyer engaged by solar developers in the Indian state that are opposing the retroactive FiT reductions.

In May 2013 Gujarat Urja Vikas Nigam Ltd, the entity that is buying solar electricity under 25-year contracts, sought approval from regulators for a reduction in the solar FiTs for existing solar farms to the "reasonable" rate of some INR 9 (USD 0.14/EUR 0.11) per kWh from the contracted average of INR 12.54. It said that solar park owners are making unjustified profits, while consumers are suffering from high power rates.

In August, Gujarat Electricity Regulatory Commission rejected the petition saying that such a petition should have been made no more than 60 days after the day of order of the FiTs. Also, it pointed out that it did not have the power to re-open solar power purchase agreements (PPAs).

Since 2010, Gujarat Urja Vikas Nigam has signed long-term power purchase agreements for 971.5 MW of solar capacity.

(INR 100 = USD 1.598/EUR 1.182)

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