Gujarat discoms fell 6603 MUs short of renewable targets in FY 2024-25 and here is why
Gujarat Urja Vikas Nigam Limited (GUVNL) and its four subsidiary distribution companies have petitioned the Gujarat Electricity Regulatory Commission (GERC) seeking revision of their Renewable Power Purchase Obligation (RPPO) targets for FY 2024-25, relaxation of the Energy Storage Obligation (ESO), and waiver of penalties for the reported shortfall.
The petition states that GUVNL, Madhya Gujarat Vij Company Limited (MGVCL), Dakshin Gujarat Vij Company Limited (DGVCL), Paschim Gujarat Vij Company Limited (PGVCL) and Uttar Gujarat Vij Company Limited (UGVCL) achieved renewable energy consumption of 24.79% against the prescribed target of 29.91%, resulting in a shortfall of 6,603.32 million units.
RPPO compliance
The petition states that total electricity consumption during FY 2024-25 was 1,29,100.78 million units, as approved by the Commission in its truing-up order dated March 25, 2026.
Against the prescribed targets, the utilities reported a shortfall of 384 million units under the wind obligation, 490.58 million units under the hydro obligation and 11,236.13 million units under the Other Renewable Energy category. However, they exceeded the Distributed Renewable Energy (DRE) obligation by procuring 7,443.90 million units against the target of 1,936.51 million units.
GUVNL has requested the Commission to allow the excess DRE procurement to be adjusted against the shortfall in the wind, hydro and Other Renewable Energy categories under Regulations 4(2) to 4(4) of the GERC (Renewable Purchase Obligation, Energy Storage Obligation and Renewable Energy Certificate Framework) Regulations, 2025.
Reasons cited for the shortfall
According to the petition, the shortfall arose due to delayed commissioning of renewable energy projects, lower-than-expected generation from commissioned projects and the timing of notification of the RPPO Regulations, 2025.
GUVNL stated that several solar, wind, waste-to-energy and distributed solar projects tied up through competitive bidding were delayed, resulting in an estimated generation shortfall of more than 5,255 million units during FY 2024-25.
The utilities also submitted that generation from several operational renewable energy projects remained below normative levels. They reported lower generation from solar, wind and biomass projects, including an overall wind Capacity Utilisation Factor (CUF) of 17.09% against the normative 24.5%, resulting in an estimated shortfall of around 2,961 million units.
The petition further argues that the RPPO Regulations, 2025, prescribing the FY 2024-25 targets, were notified only on August 12, 2025, after the financial year had ended. GUVNL contended that this left no reasonable opportunity to undertake advance planning, tendering and commissioning of additional renewable energy projects required to meet the revised obligations.
Energy Storage Obligation
The utilities also sought relaxation of the Energy Storage Obligation for FY 2024-25.
Against the prescribed target of 1,291.01 million units, they reported procurement of only 10.44 million units of stored energy.
GUVNL submitted that commercially viable battery energy storage projects were not available during the relevant period and that several procurement initiatives either failed or were delayed due to high costs, developer defaults or pending regulatory approvals. It also noted that the Energy Storage Obligation was introduced through the RPPO Regulations notified after the close of FY 2024-25.
Relief sought
The petition seeks permission to adjust excess DRE procurement against other renewable purchase obligations, determination of RPPO compliance based on actual renewable energy availability, relaxation of the Energy Storage Obligation for FY 2024-25 and waiver of penalties under Regulation 10.
The utilities have argued that the reported shortfalls were caused by factors beyond their control and have relied on Regulation 4(9) of the RPPO Regulations, 2025, as well as earlier judgments of the Appellate Tribunal for Electricity (APTEL), which recognise the Commission’s power to revise renewable purchase obligations where compliance is affected by circumstances beyond the obligated entity’s control.
The Commission admitted the petition on April 20, 2026. Pursuant to its daily order dated May 26, 2026, GUVNL published public notices on June 23, 2026, inviting comments from stakeholders. The petition is currently pending before the Commission.
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