Gujarat solar energy has been massively promoted by the state government led by Modi which has announced numerous incentives and subsidies. The state has an ambition of becoming the Germany of solar energy in India with more than 1 GW of capacity in the next 2-3 years,but the solar energy developers has missed the deadline.29 solar companies in India now want an extension which add up to 450 MW of capacity. The 300 MW of capacity target has not even been half covered with only 140 MW installed.However the problem is that on Jan 29 2012 new feed in tariffs will be announced which will be lower. This will benefit the older developers if they get the older higher tariffs with much lower equipment prices.The State has already implemented a clear and forward looking Renewable Energy Policy with emphasis on Solar Energy.It has signed PPAs with a number of solar project developers under its State Solar Subsidy Scheme.While other states are looking mainly towards the federal subsidy scheme JNNSM to push Solar Energy Generation, Gujarat is looking to push Solar Energy on its own.Gujarat now has reportedly acquired 3000 acres at Charnaka village in Patan District which it will give to solar project developers to install solar panels.

Gujarat state has led India’s nascent solar industry, awarding licenses for 959 megawatts to developers seeking a foothold in a state-subsidized renewable energy market.

Note Solar Panels prices in India have fallen because of  massive oversupply globally.Solar Power in India has not been executed well on the ground just like other infrastructure projects which are missing deadlines.Even JNNSM projects have seen overrun be some developers.The developers in Gujarat face a rs 10,000 fine each day for the miss.

Read all about Solar Power in India

GERC to hear petitions of solar power developers

The fate of as many as 29 odd solar power developers in Gujarat will be decided by the electricity regulator, Gujarat Electricity Regulatory Commission (GERC) on Friday, December 30, 2011 as the later will take up the hearing on the petitions filed by the companies for extension of control period of Solar power in the state.The developers of about 450 megawatt solar power generation capacities in Gujarat have demanded an extension of the current tariff regime, the deadline for which comes to an end on December 31, 2011.According to the information available with the state government officials, out of the solar power capacity committed under PPAs, only 140 Mw of capacity has been commissioned in the state so far. Earlier, the state government had anticipated commissioning of 300 Mw by the end of December, 2011.

Interestingly, the state power regulator has proposed new tariff structure for those solar power producers, who will commission their plants in the state during the period from January 29, 2012 to March 31, 2015.However, the new structure excludes solar power projects, for which PPAs have already been signed.