The Gujarat government has recently disclosed plans to invest USD 420.34 million in the establishment of a solar power plant within the state. This announcement followed the signing of a power usage agreement between State Energy Minister Kanu Desai and the Solar Energy Corporation of India (SECI) for the procurement of 700 MW of electricity.

As per the agreement, a solar power plant will be constructed in Gujarat, with an anticipated operational date of October 2024. The solar energy generated from this project will be supplied to the state government, with support provided by the Central Government through Viability Gap Funding (VGF).

This initiative, set to contribute an additional 700 MW of power to Gujarat, will bolster the overall solar power generation in the state. This will, in turn, result in more robust daytime power supply to the state's farmers under the Kisan Suryodaya Yojana. The project is to be overseen by SECI as part of the second phase of the "Central Public Sector Undertaking (CPSU)" scheme under the New and Renewable Energy Department of the Central Government in Gujarat. It will play a pivotal role in bolstering national energy security and promoting environmental sustainability by utilizing locally manufactured solar PV cells and modules.

The Power Usage Agreement was formally executed by the General Manager (Renewable Energy) of Gujarat Urja Vikas Nigam Limited (GUVNL) on behalf of the State Government and the General Manager (Power Trading) of SECI representing the Solar Energy Corporation of India.

Gujarat, a state positioned along the western coast of India, has taken a leading role in the country's renewable energy transformation. Benefitting from ample sunlight and adopting a progressive stance on renewable energy, Gujarat has emerged as a prominent participant in the solar power market.

The Gujarat government has been instrumental in propelling the growth of the solar power sector through the implementation of various policies and initiatives aimed at encouraging the adoption of solar energy. Notably, in 2009, the state launched the Gujarat Solar Policy, designed to stimulate solar power generation and attract investments. This policy introduced incentives such as subsidies, tax exemptions, and enticing power purchase agreements (PPAs) for solar power developers.

A standout contribution to Gujarat's solar power landscape is the establishment of the Charanka Solar Park, located in the Patan district. This solar park ranks among the largest in Asia, boasting a total capacity exceeding 2 GW. It has not only been a regional success but has also gained recognition at the national level as a flagship example of renewable energy projects.

The Gujarat solar power market has also been marked by substantial technological advancements. Solar photovoltaic (PV) technology has evolved to become more efficient and cost-competitive over time, positioning solar power as a viable alternative to conventional energy sources. Furthermore, innovations in energy storage and grid integration technologies have reinforced the reliability and feasibility of solar power in the state.