Gujarat Urja Vikas Nigam Ltd (GUVNL), a Gujarat-headquartered state power utility, has mandated Domestic Content Requirement panels for new solar projects up to 5 MW under its DREBP framework. This rule change was described by developers as a major cost escalator because project inputs have become significantly more expensive. As per Gujarat Chamber of Commerce and Industry (GCCI), the INR 2.76 per unit tariff (~ $0.033) announced by Gujarat Electricity Regulatory Commission had earlier encouraged projects totalling 1,500 MW. The new DCR mandate has raised per MW costs by INR 1 crore (~ $120,000), and overall project viability has weakened. According to GCCI, registrations surged initially, yet many planned developments were placed on hold after August. Industry sources said prolonged monsoon conditions and unclear energy-banking rules further delayed new installations across Gujarat’s industrial segment.
GUVNL mandates DCR panels for Gujarat’s sub 5 MW solar projects
GUVNL’s DCR mandate for sub 5 MW solar projects raised per MW costs, industry experts and GCCI said, making ₹2.76 tariffs unviable and slowing Gujarat installations.
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