The Gujarat Electricity Regulatory Commission (GERC) has approved a power purchase agreement between Jubilant Infrastructure, a wholly owned subsidiary of Jubilant Ingrevia, and O2 Renewable Energy III, a subsidiary of O2 Power, for procuring 9 MW of wind-solar hybrid power. The tariff for the power has been set at Rs 4.13 per kWh.
Jubilant Infrastructure, an SEZ developer with a GERC-granted distribution licence since 2012, delayed operations due to low energy demand and an underdeveloped network. In August 2023, it received approval to begin distribution and issued a request for proposal for 9 MW of renewable energy. O2 Renewable Energy III was the sole bidder, meeting requirements with a 70 per cent CUF proposal. GERC approved the Rs 4.13 per kWh tariff despite being higher than other tenders, citing benefits like reduced transmission costs and price stability. Additionally, the Commission approved deviations in the PPA, such as increased CUF, provisions for excess energy handling, delay in commissioning, change in law, and the inclusion of green attribute benefits.
In September 2024, the Gujarat Electricity Regulatory Commission set a levelised tariff of Rs 2.84 per kWh for wind power projects below 10 MW capacity commissioned between June 6, 2022, and March 31, 2027, with a 25-year project life, a normative capital cost of Rs 70 million per MW, and operations and maintenance costs starting at Rs 700,000 per MW, escalating annually at 3.84 per cent.
