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Gujarat Order 31.1

Gujarat Order 31.1

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Published by Neeraj Singh Gautam

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Published by: Neeraj Singh Gautam on Jun 11, 2011
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In the matter of : Determination of the tariff for Procurement of Power byDistribution Licensees from Wind Energy Generatorsand other commercial issuesIn exercise of the powers conferred under sections 61(h), 629(1)(a)and 86(1)(e) of the Electricity Act, 2003 (36 of 2003) and all other powersenabling it in this behalf, the Gujarat Electricity Regulatory Commission(hereinafter referred to as “the Commission”) determines the price forprocurement of power by Distribution Licensees and Others in Gujarat fromwind energy projects.This order is the second order on Wind energy. This order isculmination of an elaborate consultative process after considering thesuggestions received from various stakeholders
1. Background
1.1 Draft Order on Wind Energy Project1.2 Public Hearing1.1
Draft Order on Wind Energy Project
 The Commission prepared draft Order No.2 of 2009 on“Determination of Tariff for Procurement of Power by DistributionLicensees from Wind Energy Generators and other Commercial Issues”,which was placed on the website of the Commission on 17.5.2009 for
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inviting comments and suggestions. The list of those who havecommunicated their views is given in Annexure-1.
1.2 Public Hearing:
A public hearing was held on 13.10.2009. The list of theparticipants who participated in the hearing and expressed their viewsis given in Annexure-II.
2. General Approach
2.1 Commission’s Regulations on Procurement of Power fromRenewable Energy Sources2.2 Control period2.3 Process of Determination of Tariff 2.4 Preferential Tariff 2.5 Determination of Tariff 
2.1 Commission’s Regulations on Procurement of Power fromRenewable Energy Sources
The Commission had notified Regulations No.15 titled the“Gujarat Electricity Regulatory Commission (Power Procurementfrom Renewable Sources) Regulations, 2005” on 29
October, 2005.By the said Regulations, the Commission fixed the Renewable PowerPurchase Obligations (RPPO) of the Distribution Licensees for theyears 2006-07, 2007-08 and 2008-09. For the subsequent period, theCommission prepared draft regulations viz. “The Gujarat ElectricityRegulatory Commission (Power Procurement from RenewableSources) Regulations,2009 and issued Public Notice and invited
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comments/ suggestions from the stakeholders. In the said draftregulations, the Commission proposed a higher percentage of powerpurchase obligation by Distribution licensees and it was also proposedto extend the scope of applicability of these regulations to captive andopen access user(s)/ consumer(s). These draft regulations werechallenged by some of the stakeholders before the Hon’ble HighCourt of Gujarat and the Hon’ble High Court of Gujarat disposed of the petition on 9.11.2009 by vacating interim stay which was grantedearlier. The Commission is in the process of finalizing its regulations.
2.2 Control period
The Commission had, vide its Order No.2 of 2006 dated 11
 August,2006, determined the Wind Energy Tariff for a period of threeyears, i.e. upto 10
August,2009.The draft for the present order was published on 17.05.2009and it was proposed to be effective from 1
July, 2009.However, someof the objectors suggested that the present order be made effectivefrom the end of previous control period.Since the previous control period expired on 10
August, 2009,the Commission decides that the control period for this order will be 3(three) years w.e.f. 11
August, 2009.
2.3 Process of Determination of Tariff 
The Commission has determined the Wind energy tariff basedon broad principles contained in Commission’s regulations on “Terms

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