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Wednesday, 08 November 2017 16:56

HC nod for Gujarat’s first wind power auction

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08/11/2017

Gujarat high court has cleared way for the state government to hold first wind auction as it turned down a petition filed by the Indian Wind Energy Association.

The Gujarat Urja Vikas Nigam Ltd (GUVNL) invited bids for 500MW wind energy auction. But petitioner association approached the HC and raised objection to the bidding process on the ground that the central government has only issued draft guidelines for governing such wind energy auction, and it has not finalized any such guidelines.

The association argued that in absence of any guidelines, holding auction will violate provisions of section 62 of the Electricity Act, 2003. On the day petition was filed, the HC stayed the process of auction.

The high court allowed bidding to continue, but stayed the Gujarat Electricity Regulatory Commission (GERC) from granting final approval to the process. According to GUVNL's advocate Premal Joshi, the state's power distributor company submitted that it is a competitive bidding.

The association wanted higher rate, but the authorities have to take into consideration of welfare of consumers. There is no harm in permitting competitive bidding even in absence of any final guidelines for auction of wind energy. After hearing the case, Justice Bela Trivedi dismissed the petition making the way clear for Gujarat's first wind auction. However, the court has extended the stay granted earlier and GUVNL has been restrained from granting approval to any finality in the auction for a week.

Additional Info

  • News Section: Wind Energy News
  • Month: November
  • Year: 2017

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