Gandhinagar: The decision of Gujarat Urja Vikas Nigam Ltd (GUVNL) to impose a cap on energy banking for solar power plants, limiting it to 30% of total consumption, has raised concerns among renewable energy stakeholders, who worry that it may hinder the sector’s growth in the state.

According to a news report, the cap has significantly impacted solar power plants, with estimates suggesting that around 800-1,000 MW of solar capacity is experiencing losses of over 5,000 units daily. This has placed considerable financial strain on these plants, many of which were set up by companies transitioning to green manufacturing.

The renewable energy industry has urged the Gujarat government to intervene, arguing that the new rule will discourage investment in renewable energy infrastructure. The Federation of Renewable and Consumers of Energy (FORCE) has formally appealed to the Gujarat Electricity Regulatory Commission (GERC) to challenge the 30% cap, claiming that it contradicts existing regulations.

Kunj Shah, chairman of the renewable energy committee at Assocham Gujarat, stated that they have requested GUVNL to raise the cap from 30% to the highest possible limit for Green Energy Open Access (GEOA).