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Gujarat Renewable Energy Policy 2023

₹5 Lakh Cr
Targeted RE Investment by 2030
25 Years
Benefits Period from CoD
No Cap
Capacity for Captive/3rd-Party
30 Sep 2028
Policy Operative Until
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Overview

Gujarat Renewable Energy Policy 2023

The Gujarat Renewable Energy Policy 2023 provides a single, simplified framework for setting up Solar, Wind, and Wind-Solar Hybrid projects in Gujarat. The policy covers ground-mounted, rooftop, floating, canal-top, and offshore-potential generation, with wheeling, banking, open-access, and REC provisions for captive, third-party, and DISCOM sale. It aims to streamline clean energy expansion and scale up private investment across the state.

Notified vide G.R. No. REN/e-file/20/2023/0476/B1, dated 04/10/2023, the policy is administered by the Gujarat Energy Development Agency (GEDA) as the State Nodal Agency, and implemented by Gujarat Urja Vikas Nigam Ltd (GUVNL). It is operative up to 30-Sept-2028.
1. Vision & Objectives

Tap Gujarat's Solar, Wind & Hybrid Potential

Gujarat Renewable Energy Policy 2023 is designed to accelerate decarbonization and provide a simplified framework for developing clean energy projects. This aligns with India's national target of achieving 50% of cumulative installed power capacity from non-fossil sources by 2030. The State has an installed renewable capacity of approximately 21.6 GW, and the policy aims to leverage Gujarat's potential of 36 GW solar and 143 GW wind, attracting investment of around ₹5 lakh crore over approximately 4,00,000 acres, while also harnessing offshore-wind potential along its 1,600 km coastline.

Vision

  • Tap the renewable energy potential of the State to the maximum possible extent.
  • Attract participation from Industries, MSMEs, Organisations and Consumers in augmenting clean energy sources.
  • Achieve the State's Sustainable Development Goals through rapid transition to clean energy.
  • Make available quality, reliable and cost-competitive renewable power to consumers within a conducive policy framework.
  • Achieve 50% of cumulative installed capacity from non-fossil fuel sources by 2030.

Objectives

  • Reduce dependency on fossil fuels and ensure energy security.
  • Supply day-time power to agricultural consumers and reduce the carbon footprint while hedging energy cost.
  • Promote decentralised RE generation.
  • Promote investment, employment & skill enhancement, local manufacturing and start-ups in the RE sector.
  • Encourage R&D, innovative technologies and pilot projects in the RE sector.
  • Promote energy efficiency by creating energy awareness.
2. Eligibility & Definitions

Who can set up a project and what is covered

Who Can Set Up a Project — Clause 8

Any individual, company, body corporate, association, body of individuals (whether incorporated or not) or artificial juridical person is eligible to set up RE projects under the policy. Projects may be set up for captive use and/or for selling electricity to any third party (whether registered under the REC mechanism or not) or to distribution licensees, subject to the Electricity Act 2003. There is no capacity restriction for captive use or third-party sale relative to the consumer's contracted demand or sanctioned load.

Policy Scope — Clause 7

The policy covers ground-mounted solar, rooftop solar, floating solar, canal-top solar, wind, rooftop/small-scale wind, and wind-solar hybrid projects. It is not applicable to RE projects set up to supply power to Green Hydrogen / Green Ammonia units (which are covered under a separate policy framework).

Key Definitions — Clause 5

TermMeaning
RE ProjectA solar project, wind project or wind-solar hybrid project.
Project / RE DeveloperAn entity that invests in setting up solar, wind, or hybrid projects for power generation. On transfer, the transferee becomes the developer.
Hybrid Type-AConversion of existing or under-construction standalone wind/solar plants into hybrid by adding solar/wind capacity.
Hybrid Type-BNew wind-solar hybrid projects not registered with GEDA (or without GETCO/STU evacuation permission) until the policy's notification date.
Gross MeteringEntire energy generated by the rooftop system is exported to DISCOMs at the agreed rate.
Net ImportNet energy consumed from DISCOMs after setting off rooftop RE generation against consumption during the billing cycle.
Obligated EntitiesEntities obligated to fulfil the Renewable Power Purchase Obligation (RPO) prescribed by GERC.
Captive Generating PlantGenerating plant meeting the qualification criteria under the Electricity Rules, 2005 (as amended).
3. Commercial & Fiscal Incentives

Concessions, preferential tariffs, and banking rules

This is a framework policy where specific charges and tariffs are set by GERC from time to time through tariff orders. The primary commercial and fiscal concessions stated in the policy document are outlined below.

A. Charge Concessions

IncentiveProvision under the Policy
Surcharge Exemptions (Cl. 15.8)Cross-subsidy and additional surcharges are not applicable to consumption from RE projects fulfilling captive criteria. Non-captive projects attract GERC-determined surcharges.
Multi-location wheeling (Cl. 15.7)Wheeling for captive/third-party sale at more than one location is allowed on payment of 5 paise per unit fed into the grid, in addition to GETCO transmission charges and grid losses.
Banking — residential solar (Cl. 14.1)No banking charges apply on solar power consumed by residential consumers. Other consumers get billing-cycle banking on payment of GERC-determined charges.
Electricity Duty (Cl. 18)Governed by the Gujarat Electricity Duty Act 1958 and its amendments.
Customs & Excise Exemption (Cl. 27.4)Components imported/procured for manufacturing prototype Wind Turbine Generators (WTGs) are eligible for duty exemptions.

B. Preferential Tariffs for DISCOM Purchase (Exempt from competitive bidding)

Project CategoryTariff Mechanism
Distributed solar up to 4 MW (Cl. 16.3.1)Pre-fixed levelised tariff = simple average of tariffs discovered in GUVNL competitive bidding for solar in the preceding 6 months + 20 paisa/unit, fixed for 25 years. Lower tariff applies if GERC generic tariff is lower.
Small wind up to 10 MW (Cl. 16.3.2)Pre-fixed levelised tariff = simple average of GUVNL wind competitive-bidding tariff of the preceding 6 months, fixed for the 25-year PPA term. Lower tariff applies if GERC generic tariff is lower.
Rooftop solar under gross metering (Cl. 9.2.2)Simple average of GUVNL competitive-bidding tariff of the preceding 6 months + 20 paisa/unit, fixed for the 25-year PPA term.

C. Other Value Streams

  • Carbon Credits (Cl. 30): For projects installed through competitive bidding, carbon credits (CERs, VERs, Gold Standard, etc.) can be retained by the developer. For GERC-tariff projects, sharing is per GERC order.
  • Green Power Supply (Cl. 19): DISCOMs shall supply 100% renewable energy on requisition, at a GERC-determined Green Power Supply Tariff.
  • Land at Concessional Rates (Cl. 28.2): Government waste land may be allotted at concessional rates to RE projects supplying power to distribution licensees for Gujarat consumers.
Energy banking, wheeling, and reactive power parameters are subject to periodic GERC tariff orders. Ensure you reference the current GERC orders before finalize project economics.
4. Project Types & Ecosystem

Ground-mounted, rooftop, hybrid, RE parks, and repowering

Generation Types Supported

  • Ground-mounted Solar: Developed inside or outside solar parks, on government revenue land or private land.
  • Rooftop Solar: Installed under net-metering or gross-metering configurations, with central/state scheme incentives.
  • Floating / Canal-top Solar: Set up on reservoirs and canals via Narmada, Water Resources, or Kalpsar departments, subject to water-body royalties.
  • Wind Projects: Small-scale or utility-scale wind projects developed inside or outside wind parks.
  • Wind-Solar Hybrid (Type-A & Type-B): Only AC integration is permitted. Projects require separate ABT-compliant metering per wind turbine generator (WTG) and a dedicated evacuation line.

Renewable Energy Parks — Clause 12

Solar, wind, and hybrid parks are encouraged to share common infrastructure and evacuation channels. The minimum park capacity is 50 MW, with maximum limits aligned with MNRE guidelines. State agencies like the Gujarat Power Corporation Ltd (GPCL) can be nominated as park developers.

Repowering of Wind Projects — Clause 29

Old, inefficient wind turbines must be repowered on or before 25 years from their Commissioning Date (CoD). Full or partial repowering is allowed without any capacity ceiling limit. The repowered project receives a fresh lease/evacuation benefits term of 25 years. This provisions supersedes the Gujarat Repowering of Wind Projects Policy 2018.

Prototype WTGs, REC & ISTS Projects

  • Prototype WTGs (Cl. 27): Permitted for type-testing/certification using new components, owned by the manufacturer until RLMM listing.
  • REC Mechanism (Cl. 13): Projects can be registered under the CERC Renewable Energy Certificate mechanism for captive or third-party open access sale.
  • ISTS-Connected Projects (Cl. 22): Governed by Central Government / CERC regulations and guidelines.
5. Conditions & Obligations

Security deposits, evacuation timelines, and equipment rules

Security Deposit / Bank Guarantee — Clause 17

  • DISCOM PPAs: Bank Guarantee per bid document or scheme guidelines. If not specified, ₹5 Lakh per MW is payable at PPA signing.
  • Captive & Third-Party: A Bank Guarantee must be posted to ensure timely completion of the grid evacuation facilities.
  • Refunds: Deposits are refundable upon successful commercial commissioning within the PPA-stipulated timelines. Forfeited on project delay.

Evacuation-line Commissioning Timelines — Clause 17.4

RE Capacity RangeStipulated Period to Commission Evacuation Line & Metering
1 MW – 100 MW12 months from allotment of transmission capacity
> 100 MW – 200 MW15 months from allotment of transmission capacity
> 200 MW – 400 MW18 months from allotment of transmission capacity
> 400 MW – 1000 MW24 months from allotment of transmission capacity
> 1000 MW30 months from allotment of transmission capacity

Plant, Machinery & Metering Requirements

  • Only new plant and machinery are eligible for registration.
  • Solar modules and wind turbines must be approved under MNRE's ALMM/RLMM lists. Solar cells and modules must be BIS-compliant.
  • ABT-compliant metering (main, check, and standby) and real-time RTU telemetry to the Load Dispatch Centre (SLDC) are mandatory.
  • Grid integration must comply with CEA Connectivity Regulations 2019 and the Gujarat Electricity Grid Code.
  • Energy remaining unutilized at the end of the billing settlement period or injected in excess of sanctioned transmission capacity is treated as inadvertent flow with no set-off or payment from DISCOMs.
6. Procedure

Step-by-Step Registration & Evacuation Connection

  1. 1Submit Portal Registration: Create an account and upload project details on GEDA's Single-Window Web-Portal.
  2. 2Receive Automatic Approval: GEDA issues the project registration and accreditation automatically through the online portal.
  3. 3Apply for Grid Connectivity: Secure connectivity permission from GETCO (STU) based on their published sub-station capacity logs.
  4. 4Construct Evacuation Facilities: Set up the dedicated transmission line, installation of RTUs for communication, and ABT metering at your own cost.
  5. 5Secure Commissioning Certificate: Apply for site inspection; GEDA certifies commissioning and issues the official CoD certificate.
  6. 6Submit Progress Reports: Submit quarterly execution progress reports to GEDA to maintain active project registration.
7. Institutional Mechanism

Implementing bodies, regulatory commissions, and committees

Body / OrganizationRole under the Policy
GUVNL (Gujarat Urja Vikas Nigam Ltd)Primary implementing, coordinating, and monitoring agency for the policy.
GEDA (Gujarat Energy Development Agency)State Nodal Agency (SNA) managing portal registration, commissioning approvals, and central REC accreditations.
GETCO (Gujarat Energy Transmission Corp)State Transmission Utility (STU) managing substation RE capacity disclosures and connectivity approvals.
GERC (Gujarat Electricity Regulatory Commission)State regulator setting banking charges, transmission charges, and open-access tariff orders.
EPD Committee (Energy & Petrochemicals)Committee chaired by the Principal Secretary (EPD) that resolves grievances, amendments, and implementation difficulties.
8. Validity & Key Timelines

Important policy dates and milestone deadlines

Milestone / EventTarget Date / Timeline
Policy Commencement04/10/2023 (supersedes 2021 Solar and 2016/2018 Wind/Hybrid policies)
Hybrid Retrofits OptionAvailable for wind-solar hybrid units commissioned after 19/06/2023
Wind 2016 Commissioning Cut-off31/12/2023 (projects commissioning later are governed by the 2023 policy)
Solar 2021 Transition WindowMust commission within 6 months from 04/10/2023 to claim 2021 benefits
Duration of Benefits25 years from the CoD (or actual project lifespan)
Policy Operative TermOperative up to 30-Sept-2028 (or until a new policy is notified)