No retroactive solar FiT cuts for India's Gujarat state

Aug 20, 2013 - Power regulator Gujarat Electricity Regulatory Commission on Monday gave the thumbs-down to a petition that sought to cut the feed-in tariff (FiT) for existing solar parks, giving as reason delay and non-jurisdiction.

Early last month Gujarat Urja Vikas Nigam Ltd, the entity that is buying solar electricity under 25-year contracts, sought approval from regulators for a retroactive reduction in the solar FiTs 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.

The watchdog explained yesterday that such a petition should have been made no more than 60 days after the day of order of the FiTs. Yet, Gujarat Urja Vikas Nigam made the move more than three years after that happened. Also, Gujarat Electricity Regulatory Commission pointed out that it does 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 1.569/EUR 1.175)

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