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

From Kerala to Bangladesh: Lynching highlights deep social faultlines

By A Representative   The recent incidents of mob lynching—one in Bangladesh involving a Hindu citizen and another in Kerala where a man was killed after being mistaken for a “Bangladeshi”—have sparked outrage and calls for accountability.  

Gram sabha as reformer: Mandla’s quiet challenge to the liquor economy

By Raj Kumar Sinha*  This year, the Union Ministry of Panchayati Raj is organising a two-day PESA Mahotsav in Visakhapatnam, Andhra Pradesh, on 23–24 December 2025. The event marks the passage of the Panchayats (Extension to Scheduled Areas) Act, 1996 (PESA), enacted by Parliament on 24 December 1996 to establish self-governance in Fifth Schedule areas. Scheduled Areas are those notified by the President of India under Article 244(1) read with the Fifth Schedule of the Constitution, which provides for a distinct framework of governance recognising the autonomy of tribal regions. At present, Fifth Schedule areas exist in ten states: Andhra Pradesh, Chhattisgarh, Gujarat, Himachal Pradesh, Jharkhand, Madhya Pradesh, Maharashtra, Odisha, Rajasthan and Telangana. The PESA Act, 1996 empowers Gram Sabhas—the village assemblies—as the foundation of self-rule in these areas. Among the many powers devolved to them is the authority to take decisions on local matters, including the regulation...

What Sister Nivedita understood about India that we have forgotten

By Harasankar Adhikari   In the idea of a “Vikshit Bharat,” many real problems—hunger, poverty, ill health, unemployment, and joblessness—are increasingly overshadowed by the religious contest between Hindu and Muslim fundamentalisms. This contest is often sponsored and patronised by political parties across the spectrum, whether openly Hindutva-oriented, Islamist, partisan, or self-proclaimed secular.

When a city rebuilt forgets its builders: Migrant workers’ struggle for sanitation in Bhuj

Khasra Ground site By Aseem Mishra*  Access to safe drinking water and sanitation is not a privilege—it is a fundamental human right. This principle has been unequivocally recognised by the United Nations and repeatedly affirmed by the Supreme Court of India as intrinsic to the right to life and dignity under Article 21 of the Constitution. Yet, for thousands of migrant workers living in Bhuj, this right remains elusive, exposing a troubling disconnect between constitutional guarantees, policy declarations, and lived reality.

Policy changes in rural employment scheme and the politics of nomenclature

By N.S. Venkataraman*  The Government of India has introduced a revised rural employment programme by fine-tuning the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), which has been in operation for nearly two decades. The MGNREGA scheme guarantees 100 days of employment annually to rural households and has primarily benefited populations in rural areas. The revised programme has been named VB-G RAM–G (Viksit Bharat Guarantee for Rozgar and Ajeevika Mission – Gramin). The government has stated that the revised scheme incorporates several structural changes, including an increase in guaranteed employment from 100 to 125 days, modifications in the financing pattern, provisions to strengthen unemployment allowances, and penalties for delays in wage payments. Given the extent of these changes, the government has argued that a new name is required to distinguish the revised programme from the existing MGNREGA framework. As has been witnessed in recent years, the introdu...

Aravalli at the crossroads: Environment, democracy, and the crisis of justice

By  Rajendra Singh*  The functioning of the Ministry of Environment, Forests and Climate Change has undergone a troubling shift. Once mandated to safeguard forests and ecosystems, the Ministry now appears increasingly aligned with industrial interests. Its recent affidavit before the Supreme Court makes this drift unmistakably clear. An institution ostensibly created to protect the environment now seems to have strayed from that very purpose.

'Structural sabotage': Concern over sector-limited job guarantee in new employment law

By A Representative   The advocacy group Centre for Financial Accountability (CFA) has raised concerns over the passage of the Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (VB–G RAM G), which was approved during the recently concluded session of Parliament amid protests by opposition members. The legislation is intended to replace the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA).

'Festive cheer fades': India’s housing market hits 17‑quarter slump, sales drop 16% in Q4 2025

By A Representative   Housing sales across India’s nine major real estate markets fell to a 17‑quarter low in the October–December period of 2025, with overall absorption dropping 16% year‑on‑year to 98,019 units, according to NSE‑listed analytics firm PropEquity. This marks the weakest quarter since Q3 2021, despite the festive season that usually drives demand. On a sequential basis, sales slipped 2%, while new launches contracted by 4%.  

Safety, pay and job security drive Urban Company gig workers’ protest in Gurugram

By A Representative   Gig and platform service workers associated with Urban Company have stepped up their protest against what they describe as exploitative and unsafe working conditions, submitting a detailed Memorandum of Demands at the company’s Udyog Vihar office in Gurugram. The action is being seen as part of a wider and growing wave of dissatisfaction among gig workers across India, many of whom have resorted to demonstrations, app log-outs and strikes in recent months to press for fair pay, job security and basic labour protections.