Gujarat looks to draw Rs 5 lakh crore investment

In a boost to the renewable energy (RE) sector, including wind, solar and wind-solar hybrid power projects, Gujarat CM Bhupendra Patel on Wednesday announced Renewable Energy Policy 2023-28. 

As part of the policy, the state has done away with restrictions on power generation capacity for new projects and aims to harness Gujarat's potential of 36GW of solar and 143 GW wind capacity. 

The government aims to draw investments to the tune of Rs 5 lakh crore in the sector with the new policy by utilizing approximately 4 lakh acres of land.

 A slew of incentives has been announced to boost renewable energy adoption by consumers and attract investments in the green energy sector.

The government has enabled power distribution companies (DISCOMs) to supply 100% RE on customer requests at green power supply tariff fixed by Gujarat Electricity Regulatory Commission (GERC).

The RE power settlement against consumer consumption will be carried out based on the billing cycle.

With the new policy, the state aims to achieve 50% of power generation from renewable energy sources by 2030.

The policy enables setting up RE projects not just for sale to discoms but also for captive consumption or third-party sale. Under the new policy, discoms can now also procure power from renewable energy projects - both solar and wind - under a competitive bidding process at a recommended tariff.

The policy also encourages a cluster-based approach by incentivizing projects under solar, wind and hybrid parks.

Industry players have also welcomed the decision on re-powering existing projects, to make them more efficient.

All project clearances will be expedited through a single-window system. 

This time, the scope of the policy has been extended to ground mounted solar, rooftop solar, floating solar, canal top solar, wind, rooftop wind and wind-solar hybrid projects.

The benefits under the policy will be applicable for 25 years from the date of commissioning or the lifespan of the RE project.

The policy will be implemented by Gujarat Urja Vikas Nigam Limited (GUVNL) with the Gujarat Energy Development Agency (GEDA), acting as the nodal agency.