GETCO’s Proposed Land Ownership Rule Triggers Industry Backlash In Gujarat’s Solar Sector

Gandhinagar, Jun 10 (KNN) The Gujarat Energy Transmission Corporation (GETCO) has proposed new connectivity criteria that would require renewable energy projects to demonstrate land ownership rather than lease agreements, potentially disrupting the state's established solar development model. 

The draft regulation, titled "Grant of Connectivity to Projects Based on Renewable Energy Sources to Intra-state Transmission/Distribution System 2025," has drawn significant opposition from industry stakeholders who warn of substantial impacts on project feasibility and costs.

Industry representatives assert that the proposed changes could undermine Gujarat's ambitious target of achieving 100 GW of renewable energy capacity by 2030. 

Kunj Shah, Co-chairman, Renewable Energy Committee, Gujarat Chamber of Commerce and Industry (GCCI), noted that approximately 75 percent of existing solar projects in the state operate on leased land arrangements. 

This model has proven essential because landowners typically prefer leasing arrangements over permanent sales for long-term energy projects.

The current framework permits developers to secure grid connectivity using leased land supported by bank guarantees, a system that has contributed to Gujarat's emergence as a leading solar energy producer. 

Shah emphasised that mandatory land ownership would create additional cost burdens for captive solar users and complicate the development process, as land acquisition represents a primary bottleneck in project execution.

The Gujarat Federation of Solar Industries has formally challenged the proposal through representations to both GETCO and the Gujarat Electricity Regulatory Commission (GERC). 

Nilesh Patel, Federation Vice-President, highlighted the practical impossibility of acquiring large contiguous land parcels, citing the example that a 50 MW solar installation requires approximately 160 acres. 

The lease model serves as an operational necessity rather than merely a convenience for developers managing such extensive land requirements.

Beyond land ownership concerns, the draft regulation introduces substantial financial obligations that industry groups consider prohibitive. 

Under the proposed structure, developers would face upfront costs of Rs 3.1 million per megawatt of capacity, encompassing transmission system guarantees, land guarantees, and infrastructure fees. 

The federation contends that these financial requirements would particularly disadvantage smaller developers and new market entrants who contribute significantly to renewable energy capacity through open access and merchant power models. 

Industry stakeholders argue that the combined procedural, financial, and operational constraints could decelerate renewable energy deployment and discourage investment in Gujarat's green energy sector.

(KNN Bureau)