1. Gujarat Power Market Development
Dr. KETAN SHUKLA (IFS),
SECRETARY,
GUJARAT ELECTRICITY REGULATORY COMMISSION

2. New Avenues in Power Sector
The Electricity Act, 2003 and Gujarat Electricity Industries (Reorganisation and Regulation) Act, envisages various activities for taking conducive measures to
Allow development of power market
Envisage competition
Protect interest of consumers and supply of electricity to all areas
Rationalize electricity tariff
Promote efficient and environmentally benign policies
Open Access in Transmission and Distribution
Power Trading
Implement Availability Based Tariff

3. Making Competitive Power Market
National Electricity Policy (2005) enjoins upon Appropriate Commission to undertake development of power market
Power / Energy Exchanges introduced in India enabling market to discover a uniform market clearing price and market clearing volume
To make electricity market competitive following elements are necessary
Several buyers and sellers to avoid exercise of market power
Demand and supply responsiveness to price
Equal access to essential facilities transmission and distribution
Liquid and efficient market places
Application of Open Access in phased manner

4. Power Sector of Gujarat
Total Installed Capacity (Including Central Generation)
12, 258 MW
Installed capacity for Wind Power
1,790 MW
Captive Generating Plant (Grid Connected)
3,033 MW
Captive Generating Plant (Off the Grid)
2,531 MW
Potential for Solar Power
- 300 days of clear sun
- solar radiation 5.6 to 6 kWh per Sq. Mt. per day
Sources: Submissions by Licensees during their filing of ARR, 2010

5. Power Sector of Gujarat
Total Installed Capacity
12,258 MW
Projected Peak Demand in 2012 (As per 17th EPS 6% Growth)
14,374 MW
Installed Capacity Required by 2012 (at 80% PLF)
18,428 MW
Planned Capacity Addition by 2012
8,900 MW
Capacity Available by 2012
18764 MW
Surplus /(Deficit) by 2012
+ 336 MW

6. Capacity to double at the end of XI Plan
The Commission has approved Power Procurement for 6000 MW through Competitive Bidding in various orders to be purchased by GUVNL
Sugen Power Project of 1100 MW established by Torrent Power Ltd. to reduce the power deficiency in the State.
Targeted addition of 3110 CKM of Transmission Lines and 60 number of Substations for by GETCO
In Distribution, Constant improvement in reducing the gap between Average realization and the average cost to serve
Year
State
Central
Private
Total
Cum.
Add.
Capacity as on was
9864
09-10
700
407
2147
3254
13118
10-11
1060
421
2181
15299
860
383
2222
3465
18764
 Total
2620
1211
5069
8900

7. Role of Gujarat Electricity Regulatory Commission
GERC - established under Electricity Regulatory Commission Act, since April ,1999.
Continued functioning according to first proviso of section 82 of the Electricity Act, 2003.
Tasks before the Commission:
Gradual rationalization of electricity tariff so that they reflect cost of service.
Improvement in quality of supply of power and better customer service.
Availability of electricity at reasonable rates to the consumers.
Commercial viability of the Discoms.
Development of a competitive environment for efficient operations of the power sector in the state and for creating favorable conditions for investment in this sector to unlock its large potential. 
Introduction of open access in phased manner.
Promote renewable energy sources

8. Open Access
Open Access to transmission and distribution networks for third party use and to increase competition, promote the trading of electricity
Helps Captive Generating Plants to run their power projects in efficient manner and sale of their surplus power in the market at better price – where utilities benefits to bridge demand- supply gap
High Contracted Load consumers are able to procure power at cheaper rate through Open Access from the sources where it is available at cheaper rate.
Initiation by GERC
Capacity granted for Open Access increased from 551 MW to 750 MW.
Reduced the cross subsidy charges from Rs per Unit in to Rs per Unit in
Rationalized Transmission and wheeling charges

9. Intra-state Availability Based Tariff (ABT) Mechanism
ABT – Brought about the effective day ahead scheduling and frequency sensitive charges for the deviation from the schedule for efficient real-time balancing
ABT - Mechanism brings grid discipline and improve efficiency of the power system
GERC Initiative:
GERC is among the first regulators to introduce ABT mechanism
Implementation of Intra-state ABT with effect from 5th April which is applied to generators, distribution licensees, Captive Power Plants connected with grid.

10. Multi Year Tariff Introduction
MYT Tariff introduced for the period for FY to FY to bring in more predictable and transparent tariff rates in the State
Distribution Loss trajectory for the control period of MYT is given for all the Distribution Licensees
Re-oriented tariff structure to bring in more clarity and reliability
Wide participation by stakeholders during Public Hearings
Emphasis the promotion of efficiency link with gain/loss based on performance of the utilities

11. Promoting Renewable Sources of Energy
GERC notified the regulation on Procurement of Energy from Renewable Sources
Renewable Power obligation revised - Specified Minimum Percentage of the total consumption of its consumers including T&D losses during year (for Distribution Licensees)
Year
Minimum Quantum of Purchase (in %) from renewable energy sources (in terms of energy in kWh)
Total
Wind
Solar
Biomass, bagasse and others
5.00%
4.50%
0.25%
6.00%
0.50%
7.00%
5.50%
1.00%
Separate RPO for wind, solar and other renewable energy based on the availability of such sources
RPO applicable to the Captive and Open Access consumers/users as and when a separate notification is issued by the Commission.

12. REC Introduction
GERC is the First State Regulatory Commission to incorporate Renewable Energy Certificate in its Regulations of 2010
Necessary provisions in the Procurement of Energy from Renewable Sources Regulations, 2010 for Renewable Energy Certificate (REC)
Sale of Renewable Energy under REC Regime
Sale of conventional Electricity Component to Local Distribution Licensees
REC Component to Obligated Entities
Gujarat Energy Development Agency (GEDA) as the State Nodal Agency
For accreditation and recommending the renewable energy projects for registration
Function in accordance with the directions issued by the Commission and
to act in accordance to the CERC (Terms and conditions for recognition and issuance of Renewable Energy Certificate for Renewable Energy Generation) Regulations, 2010

13. Rs. 3.56 per Unit for project life of 25 years
GERC Order No.
RE Source
Tariff Rate
Capital Cost per MW
Order 1 of 2010 dated 30/01/2010
Wind
Rs per Unit for project life of 25 years
Rs. 500 Lakhs per MW
Order No. 2 / 2010 dated 29/01/2010
Solar PV
Fixed Tariff of Rs. 15 per Unit for first 12 years and Rs. 5 per Unit for next 13 years
Rs Lakhs per MW
Solar Thermal
Fixed Tariff of Rs. 11 per Unit for first 12 years and Rs. 4 per Unit for the next 13 years.
Rs Lakhs per MW
Order dated 17/05/2010
Biomass
Single Part Tariff: Rs per unit with accelerated Depreciation
Rs Lakhs per MW
Single Part Tariff: Rs per Unit without accelerated Depreciation
For developers adopting two part tariff, the Commission has determined the two-part tariff for Biomass based projects to be commissioned during the years , and separately.
Order dated 31/05/2010
Bagasse based co-gen
Single Part Tariff: Rs per unit with accelerated Depreciation
Rs. 444 Lakhs per MW
Single Part Tariff: Rs per Unit without accelerated Depreciation
For developers adopting two part tariff, the Commission has determined the two-part tariff for Bagasse based co-gen projects to be commissioned during various years of the Control period.
For Hydel Projects the rate is Rs 3.29 per unit for and escalated at 3% - For it comes to Rs per unit

14. Recent Developments in RE
GERC notified the regulation for Procurement of Energy from Renewable Sources Regulations, 2010
GERC determined the tariff rates for procurement of power from various RE sources
Power Purchase Agreements for 365 MW Solar Projects were signed by 31st May 2010
Clinton Climate Initiative (CCI) have initiated and announced to implement a 3,000 MW Solar Park Project in the state.
Under the Solar Power Policy 2009, the State Govt. allotted 716 MW of Solar Power Capacity to 34 national and international project developers
Out of 716 MW, the share of Solar Photovoltaic and Solar Thermal Technologies is 365 MW and 351 MW respectively

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