Skip to main content

Gujarat's solar slowdown: Top state adviser blames inertia on "problem of plenty"

By Rajiv Shah 
A senior adviser working with a state-run institute has sharply criticized Gujarat government's official inertia in putting up more solar plants after 800 MW were commissioned for three years starting with 2009. Pointing out that subsequently to this "not much has happened", the senior expert regrets, "There have been no further allocations, and the state solar policy expired in 2014. No new policy has yet been officially announced."
Akhilesh Magal, head adviser, solar energy, Gujarat Energy Research and Management Institute (GERMI), promoted state-controlled Gujarat State Petroleum Corporation (GSPC), says one reason why the solar power producers are refusing to come in is, "Gujarat does not allow third-party open-access" where an independent power producer "connects to a buyer" directly. "The state electric utility companies are wary of granting open-access permissions, as this would thwart businesses", he regrets.
An environmental engineer from Carnegie Mellon University and an expert on solar policies and grid integration of renewable energy, Magal, in his commentary in a top international renewable energy portal says, "It would be wrong to say that there isn’t enough land. The solar resource, of course, continues to be good"", he says, wondering, while most developers and investors have had a good experience in Gujarat, "why is the state holding back on further allocations?"
Magal
The commentary, titled "Gujarat & The Problem Of Plenty", suggests, the reversal in solar field has happened despite the fact that "Gujarat was the first state in India to announce its solar policy in 2009" and its "policy preceded the National Solar Mission (NSM) and was the first (and since then the only) policy to be based on a fixed feed-in tariff (FiT)." 
A major reason why solar power is no more being encouraged in Gujarat, suspects Magal, is "Gujarat is one of the few states in India that have a power surplus" and Gujarat’s state-owned "distribution companies (DISCOMs) literally do not need any more power, and therefore have no reason to purchase solar power."
As against this, Magal says, "In most other states with power deficits, solar power is an easy way to quickly meet the deficit. Thermal power plants take time to get commissioned, and coal linkages are a constraint in India today. In Gujarat, solar can only replace conventional generation, and not augment it. Sending power to other states is allowed, but severely limited due to transmission capacity bottlenecks."
Then, Magal says, "Although the price of solar has fallen by more than 60% since Gujarat signed its first power purchase agreements (PPAs), solar is still about 30% more expensive than long-term thermal power contracts from new coal plants." Against this backdrop, "DISCOMs are not allowed to freely pass on these costs to consumers unless they get the proposed tariff approved by the regulator, State Electricity Regulatory Commission (SERC)."
Explaining the constraint, the expert says, "This would leave the onus on the government to bridge the difference. Solar PPAs are long-term agreements (at least 25 years), which would mean that the government has a sizable outflow on its cash-flow sheet for a long time. Governments generally are wary of making such long-term commitments."

Comments

Ms. Sowbhagya Rao, Senior Project Fellow, Outreach Manager (Social Media and Content), Gujarat Energy Research and Management Institute said…
I am writing to you with reference to the article published on the following site - http://www.counterview.net/2015/04/gujarats-solar-slowdown-top-state.html

​I would like to bring to your notice​ ​that the views expressed in the article published in Counterview has even remotely no proximate nexus to the views expressed by Mr. Akhilesh Magal.

​Firstly, The author’s views and tone are not critical in nature. They simply present unbiased facts (“Gujarat has not announced a policy yet”, “DISCOMs are wary of procuring solar power” etc.).

Secondly, The author has also offered solutions (second part of the article) which the blog Counterview has not even discussed. This is incorrect information. If you want to quote the author, it is fine, but quoting only one part of the article is a misrepresentation of the author’s views and facts of this case. Both sides of the argument need to be presented duly. ​

I would request you to eschew from publishing inaccurate information (that is duly required of you from the Norms of Journalistic Conduct).

TRENDING

Telangana government urged to stop 'unconstitutional' relocation of Chenchu tribes

By A Representative   The Nallamalla forests are witnessing a renewed surge of indigenous resistance as the Chenchu adivasis , a Particularly Vulnerable Tribal Group (PVTG), have formally launched the Chenchu Solidarity Forum (CSF) on the eve of World Earth Day to combat what they describe as unlawful and forced relocation from the Amrabad Tiger Reserve . 

Kolkata dialogue flags policy and finance deficit in wetland sustainability

By A Representative   Wetlands were the focus of India–Germany climate talks in Kolkata, where experts from government, business, and civil society stressed both their ecological importance and the urgent need for stronger conservation frameworks. 

'Fraudulent': Ex-civil servants urge President to halt Odisha tribal land dispossession

By A Representative   A collective of 81 retired civil servants from the Constitutional Conduct Group has written to the President of India expressing alarm over what they describe as the wrongful dispossession of tribal lands in Odisha’s Rayagada district. The letter, dated April 19, 2026, highlights violent clashes in Kantamal village where police personnel reportedly injured over 70 tribal residents attempting to protect their community rights. 

Cracks in Gujarat model? Surat’s exodus reveals precarity behind prosperity claims

By Vidya Bhushan Rawat*   The return of migrant workers from Uttar Pradesh and Bihar, particularly from Gujarat, was inevitable. Gujarat has long been showcased as the epitome of “infrastructure” and the business-friendly Modi model. Yet, when governments become business-friendly, they require the poor to serve them—while keeping them precarious, unable to stabilize, demand fair wages, or assert their rights. The agenda is clear: workers must remain grateful for whatever crumbs the Seth ji offers.  

The soundtrack of resistance: How 'Sada Sada Ya Nabi' is fueling the Iran war

​ By Syed Ali Mujtaba*  ​The Persian track “ Sada Sada Ya Nabi ye ” by Hossein Sotoodeh has taken the world by storm. This viral media has cut across linguistic barriers to achieve cult status, reaching over 10 million views. The electrifying music and passionate rendition by the Iranian singer have resonated across the globe, particularly as the high-intensity military conflict involving Iran entered its second month in March 2026.

Dhandhuka violence: Gujarat minority group seeks judicial action, cites targeted arson

By A Representative   The Minority Coordination Committee (MCC) Gujarat has written to the Director General of Police seeking judicial action in connection with recent violence in Dhandhuka town of Ahmedabad district, alleging targeted attacks on properties belonging to members of the Muslim community following a fatal altercation between two bike riders on April 18.

Maoist activity in India: Weakening structures, 'shifts' in leadership, strategy and ideology

By Harsh Thakor*  Recent statements by government representatives have suggested that Maoism in India has been effectively eliminated, citing the weakening of central leadership and intensified security operations. These claims follow sustained counterinsurgency efforts across key regions, including central and eastern India. However, available information from security agencies and independent observers indicates that while the organizational structure of the CPI (Maoist) has been significantly disrupted, elements of the movement remain active. Reports acknowledge the continued presence of cadres in certain forested regions such as Bastar and parts of Dandakaranya, alongside smaller, decentralized units adapting their operational strategies.

Why link women’s reservation to delimitation? The unspoken political calculus

By Vikas Meshram*  April 16, 2026, is likely to be recorded as a special day in the history of Indian democracy. In a three-day special session of Parliament, the central government is set to introduce a comprehensive package of three historic bills: the Constitution (131st Amendment) Bill, 2026; the Delimitation Bill, 2026; and the Union Territories Laws (Amendment) Bill, 2026. The stated purpose of all three is the same: to implement the Nari Shakti Vandan Adhiniyam (106th Constitutional Amendment) passed in 2023. However, the political intent concealed behind these measures — and their impact on the federal balance — is far more profound. It is absolutely essential to understand this.

The high price of unemployment: The human cost of the drug crisis in J&K

​By Raqif Makhdoomi*  ​ Jammu and Kashmir is no longer merely at risk of a drug epidemic ; it is losing the fight. The statistics are staggering, with approximately 13.5 lakh people—nearly 8% of the total population—caught in the grip of substance abuse . In the ranking of Indian Union Territories , Jammu and Kashmir now sits at a grim top. We have officially reached a point where we can no longer speak in hypotheticals about a future crisis. The vocabulary has shifted from "if" to "if not addressed immediately."