Apex state power utility Gujarat Urja Vikas Nigam Limited (GUVNL) is going to ink power purchase agreements with solar project developers under renewable energy certificate mechanism soon. The process for the same will start from next month. The state nodal agency for REC Gujarat Energy Development Agency will sign memorandum of understanding with several project developers during two day Vibrant Gujarat Global Investors’ Summit this weekend.
Gujarat is expected to offer close to Rs 2.64 per unit to solar project developers who will draw addition revenues from trade of their REC. Earlier in 2009, several solar project developers inked MoUs with an intention to commission over 3,000 mw of capacity. However, majority of the capacity could not come up as the GUVNL inked PPAs for less than 1,000 mw of capacity. Left out solar project developers were waiting for the government of Gujarat to ink PPAs for renewable power under REC mechanism. Existing developers in the state too would try their luck again this time. Out of country’s 1,100 mw of solar power capacity, Gujarat alone boasts of close to 750 mw of installed capacity.