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 colonial mercantilism to Hindutva: New book on the making of power in Gujarat

By Rajiv Shah  Professor Ghanshyam Shah ’s latest book, “ Caste-Class Hegemony and State Power: A Study of Gujarat Politics ”, published by Routledge , is penned by one of Gujarat ’s most respected chroniclers, drawing on decades of fieldwork in the state. It seeks to dissect how caste and class factors overlap to perpetuate the hegemony of upper strata in an ostensibly democratic polity. The book probes the dominance of two main political parties in Gujarat—the Indian National Congress and the BJP—arguing that both have sustained capitalist growth while reinforcing Brahmanic hierarchies.

Dalit woman student’s death sparks allegations of institutional neglect in Himachal college

By A Representative   A Dalit rights organisation has alleged severe caste- and gender-based institutional violence leading to the death of a 19-year-old Dalit woman student at Government Degree College, Dharamshala, Himachal Pradesh, and has demanded arrests, resignations, and an independent inquiry into the case.

Domestic vote-bank politics 'behind official solidarity' with Bangladeshi Hindus

By Sandeep Pandey, Faisal Khan  The Indian government has registered a protest with Bangladesh over the mob lynching of two Hindus—Deepu Chandra Das in Mymensingh and Amrit Mandal in Rajbari. In its communication, the government cited a report by the Association of Hindus, Buddhists and Christian Unity Council, which claims that more than 2,900 incidents of killings, arson, and land encroachments targeting minorities have taken place since the interim government assumed power in Bangladesh. 

From protest to proof: Why civil society must rethink environmental resistance

By Shankar Sharma*  As concerned environmentalists and informed citizens, many of us share deep unease about the way environmental governance in our country is being managed—or mismanaged. Our complaints range across sectors and regions, and most of them are legitimate. Yet a hard question confronts us: are complaints, by themselves, effective? Experience suggests they are not.

Celebrating 125 yr old legacy of healthcare work of missionaries

Vilas Shende, director, Mure Memorial Hospital By Moin Qazi* Central India has been one of the most fertile belts for several unique experiments undertaken by missionaries in the field of education and healthcare. The result is a network of several well-known schools, colleges and hospitals that have woven themselves into the social landscape of the region. They have also become a byword for quality and affordable services delivered to all sections of the society. These institutions are characterised by committed and compassionate staff driven by the selfless pursuit of improving the well-being of society. This is the reason why the region has nursed and nurtured so many eminent people who occupy high positions in varied fields across the country as well as beyond. One of the fruits of this legacy is a more than century old iconic hospital that nestles in the heart of Nagpur city. Named as Mure Memorial Hospital after a British warrior who lost his life in a war while defending his cou...

Kolkata event marks 100 years since first Communist conference in India

By Harsh Thakor*   A public assembly was held in Kolkata on December 24, 2025, to mark the centenary of the First Communist Conference in India , originally convened in Kanpur from December 26 to 28, 1925. The programme was organised by CPI (ML) New Democracy at Subodh Mallik Square on Lenin Sarani. According to the organisers, around 2,000 people attended the assembly.

Urgent need to study cause of large number of natural deaths in Gulf countries

By Venkatesh Nayak* According to data tabled in Parliament in April 2018, there are 87.76 lakh (8.77 million) Indians in six Gulf countries, namely Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates (UAE). While replying to an Unstarred Question (#6091) raised in the Lok Sabha, the Union Minister of State for External Affairs said, during the first half of this financial year alone (between April-September 2018), blue-collared Indian workers in these countries had remitted USD 33.47 Billion back home. Not much is known about the human cost of such earnings which swell up the country’s forex reserves quietly. My recent RTI intervention and research of proceedings in Parliament has revealed that between 2012 and mid-2018 more than 24,570 Indian Workers died in these Gulf countries. This works out to an average of more than 10 deaths per day. For every US$ 1 Billion they remitted to India during the same period there were at least 117 deaths of Indian Workers in Gulf ...

Epic war against caste system is constitutional responsibility of elected government

Edited by well-known Gujarat Dalit rights leader Martin Macwan, the book, “Bhed-Bharat: An Account of Injustice and Atrocities on Dalits and Adivasis (2014-18)” (available in English and Gujarati*) is a selection of news articles on Dalits and Adivasis (2014-2018) published by Dalit Shakti Prakashan, Ahmedabad. Preface to the book, in which Macwan seeks to answer key questions on why the book is needed today: *** The thought of compiling a book on atrocities on Dalits and thus present an overall Indian picture had occurred to me a long time ago. Absence of such a comprehensive picture is a major reason for a weak social and political consciousness among Dalits as well as non-Dalits. But gradually the idea took a different form. I found that lay readers don’t understand numbers and don’t like to read well-researched articles. The best way to reach out to them was storytelling. As I started writing in Gujarati and sharing the idea of the book with my friends, it occurred to me that while...

N-power plant at Mithi Virdi: CRZ nod is arbitrary, without jurisdiction

By Krishnakant* A case-appeal has been filed against the order of the Ministry of Environment, Forest and Climate Change (MoEF&CC) and others granting CRZ clearance for establishment of intake and outfall facility for proposed 6000 MWe Nuclear Power Plant at Mithi Virdi, District Bhavnagar, Gujarat by Nuclear Power Corporation of India Limited (NPCIL) vide order in F 11-23 /2014-IA- III dated March 3, 2015. The case-appeal in the National Green Tribunal at Western Bench at Pune is filed by Shaktisinh Gohil, Sarpanch of Jasapara; Hajabhai Dihora of Mithi Virdi; Jagrutiben Gohil of Jasapara; Krishnakant and Rohit Prajapati activist of the Paryavaran Suraksha Samiti. The National Green Tribunal (NGT) has issued a notice to the MoEF&CC, Gujarat Pollution Control Board, Gujarat Coastal Zone Management Authority, Atomic Energy Regulatory Board and Nuclear Power Corporation of India Limited (NPCIL) and case is kept for hearing on August 20, 2015. Appeal No. 23 of 2015 (WZ) is filed, a...