Gujarat’s new Solar Tariff

The Gujarat government had pointed out that they will come up with new tariff from 2012; applicable for all new projects and older PPAs that could not commissioned by Dec 2011.

Many solar projects are in the construction stage and most of them should cross the 50%-60% project completion stage by Dec end 2011 but will not be able to do it 100% before Feb 2012.

The question that is currently being asked around is what happens to the projects that complete a part of their installation and cannot attain 100% installation before the deadline. From what I have heard, it seems this will be taken by on case-to-case basis by the government.

For companies that are still in fund raising mode (I know some owners owning 20-30MW) are still looking for funding. The global financial mess is not helping them either. These projects will more certainly be pushed towards the new tariff.

The State Government is currently discussing the project tariff with stakeholders and we can expect an announcement in 2011. The good feature of the Gujarat State solar policy is the absence of reverse bidding and companies/investors know what they are doing and how they will be able to achieve returns.

The new expected tariff for solar projects in Gujarat can be:

Levelized tariff for megawatt-scale and kilowatt-scale photovoltaic systems, 29 January 2012 to 31 March, 2013.
For megawatt-scale projects Levelized Tariff Phased Tariff Period
With accelerated depreciation 10.27 per kWh 11.50 per kWh for first 12 yrs
for 25 years 6.30 per kWh for next 13 yrs
Without accelerated depreciation 10.81 per kWh 12.04 per kWh for first 12 yrs
for 25 years 6.84 per kWh for next 13 yrs
For kilowatt-scale projects Levelized Tariff Phased Tariff Period
With accelerated depreciation 12.49 per kWh Not Applicable for first 25 yrs
Without accelerated depreciation 13.14 per kWh Not Applicable for first 25 yrs
Levelized tariff for solar thermal power plants, 29 January 2012 to 31 March, 2015.
Levelized Tariff Phased Tariff Period
With accelerated depreciation 12.32 per kWh 14.00 per kWh for first 12 yrs
for 25 years 7.00 per kWh for next 13 yrs
Without accelerated depreciation 13.00 per kWh 14.68 per kWh for first 12 yrs
for 25 years 7.68 per kWh for next 13 yrs
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