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India’s Gujarat to Appeal Rejection of Solar-Tariff Cut

Gujarat, India’s biggest solar power-producing state, plans to file an appeal with regulators on their decision to reject a tariff cut for photovoltaic plants.

The Gujarat Electricity Regulatory Commission will hear the appeal on Nov. 11, said Hemant Sahai, a lawyer representing solar developers that are fighting the state’s attempts to reduce the rate paid for power produced by their plants.

Gujarat Urja Vikas Nigam Ltd., the state power purchaser, filed a petition in May seeking to lower the tariff for solar power by 28 percent, citing the excessive profits earned by plant owners. The regulatory commission rejected the petition in August, saying GUVNL cannot alter the terms of the contract retrospectively.

GUVNL signed 88 contracts for a total of 971.5 megawatts of solar capacity with developers, including Moser Baer India Ltd. (MBI), Adani Enterprises Ltd. (ADE), Tata Power Co. (TPWR) and Welspun Energy Ltd., starting 2010.

Raj Gopal, managing director at GUVNL, was unavailable when called at his office today and didn’t respond to an e-mail seeking comment.

To contact the reporter on this story: Natalie Obiko Pearson in Mumbai at npearson7@bloomberg.net

To contact the editor responsible for this story: Reed Landberg at landberg@bloomberg.net

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