India’s solar energy developers argued for the dismissal at a hearing held by the Gujarat Electricity Regulatory Commission yesterday to throw out the state government’s decision to impose retroactive reductions in the rate paid for electricity generated from renewable energy sources.
The developers are objecting against the proposal submitted by Gujarat Urja Vikas Nigam Ltd. The proposal demands a 28% cut in the rate it pays for getting electricity from solar power plants for 88 projects totaling 971.5 MW of solar capacity because of unjustified and windfall gains by the owners.
However, the project developers say that their 25-year power purchase agreements with GUVNL, don’t allow for tariff revisions. Tariff can only be revised after mutual consent in order to increase electricity generation or if the project developers fail to complete the project within the allotted time frame. The next hearing on the matter by Gujarat Electricity Regulatory Commission is on August 5.
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