Karnataka Seeks Removal of Tariff Ceiling for Renewable Energy Bids
POWER & RENEWABLE ENERGY

Karnataka Seeks Removal of Tariff Ceiling for Renewable Energy Bids

The Karnataka government has asked the Karnataka Electricity Regulatory Commission (KERC) to remove the ceiling on tariffs discovered through competitive bidding for renewable energy projects awarded under state bids. Gaurav Gupta, Additional Chief Secretary in the Energy Department, disclosed the request during an industry interaction at the Bharat Renewable Energy Summit 2026 in New Delhi.

Gupta said the government had written to the regulator after the tariff ceiling was raised as a concern during a panel discussion on renewable energy in Karnataka. He also indicated that the state had issued an advisory stating that no ceiling should be imposed on tariffs for bids floated by the government.

The tariff cap has been a longstanding concern among renewable energy developers. KERC initially set the ceiling at Rs. 3.10 per kWh, before raising it to Rs. 3.60 per kWh following representations from the industry. Developers contend that tariffs should be determined by market forces, as predetermined limits can restrict bidding and prevent projects from reflecting prevailing costs.

Karnataka plans to add 5 to 6 GW of renewable energy capacity annually until 2030. The state expects to add about 30 GW over the next five years and 41 GW over the next 10 years to its existing 28 GW capacity. Gupta said the 30 GW projection was based on investment roadmaps announced by companies and added that Karnataka aimed to attract Rs. 3 tn in investments over five years.

Divya Prabhu, Managing Director of Karnataka Renewable Energy Development Corporation (KREDL), said the state would soon issue a 600 MW tender for firm and dispatchable renewable energy. Karnataka is also planning a second solar park at Ryapte, following the 2 GW Pavagada project. The proposed park will include 2 GW of solar capacity and 1 GW of battery storage, with landowners voluntarily offering 8,000 acres for the project.

The Karnataka government has asked the Karnataka Electricity Regulatory Commission (KERC) to remove the ceiling on tariffs discovered through competitive bidding for renewable energy projects awarded under state bids. Gaurav Gupta, Additional Chief Secretary in the Energy Department, disclosed the request during an industry interaction at the Bharat Renewable Energy Summit 2026 in New Delhi. Gupta said the government had written to the regulator after the tariff ceiling was raised as a concern during a panel discussion on renewable energy in Karnataka. He also indicated that the state had issued an advisory stating that no ceiling should be imposed on tariffs for bids floated by the government. The tariff cap has been a longstanding concern among renewable energy developers. KERC initially set the ceiling at Rs. 3.10 per kWh, before raising it to Rs. 3.60 per kWh following representations from the industry. Developers contend that tariffs should be determined by market forces, as predetermined limits can restrict bidding and prevent projects from reflecting prevailing costs. Karnataka plans to add 5 to 6 GW of renewable energy capacity annually until 2030. The state expects to add about 30 GW over the next five years and 41 GW over the next 10 years to its existing 28 GW capacity. Gupta said the 30 GW projection was based on investment roadmaps announced by companies and added that Karnataka aimed to attract Rs. 3 tn in investments over five years. Divya Prabhu, Managing Director of Karnataka Renewable Energy Development Corporation (KREDL), said the state would soon issue a 600 MW tender for firm and dispatchable renewable energy. Karnataka is also planning a second solar park at Ryapte, following the 2 GW Pavagada project. The proposed park will include 2 GW of solar capacity and 1 GW of battery storage, with landowners voluntarily offering 8,000 acres for the project.

Related Stories

Gold Stories

Next Story
Resources

Prateek Foundation Aakaar celebrates Diwali with children in Noida

Prateek Foundation Aakaar, the community initiative of Prateek Group, organised a Diwali celebration for children at Saikripa, Noida, on 4 November 2026. The one-hour programme brought together members of the foundation and children for an afternoon of creative and recreational activities.The celebration included diya painting, games and interactive sessions, with children designing and decorating diyas. The activities were aimed at encouraging creativity and providing an opportunity for the children to participate in the festive celebrations.Prateek Tiwari, Managing Director, Prateek Group, s..

Next Story
Equipment

Shakti Pumps signs MoU with ISA to expand solar water pumping

Shakti Pumps (India) signed a Memorandum of Understanding (MoU) with the International Solar Alliance (ISA) to strengthen international collaboration and accelerate the adoption of solar water pumping solutions. The agreement was signed by Ashish Khanna, Director General, ISA, and Ramesh Patidar, Managing Director, Shakti Pumps, alongside the ninth ISA Session at the Bharat Renewable Energy Summit and Expo (BRES) 2026, held at Bharat Mandapam, New Delhi.At the summit, Shakti Pumps showcased its integrated renewable energy portfolio, including solar pumping systems, rooftop solar solutions unde..

Next Story
Real Estate

Worli-Lower Parel gains ground as Mumbai’s commercial hub

Mumbai’s Worli-Lower Parel corridor is gaining prominence as a commercial and luxury residential destination, attracting financial institutions, technology companies and high-net-worth individuals. Infrastructure upgrades, including the Coastal Road and improved transit connectivity, are contributing to the shift in occupier interest from established business districts such as Bandra-Kurla Complex (BKC) and Nariman Point.Recent leasing transactions underline the corridor’s growing commercial appeal. At Marathon Futurex in Lower Parel, three financial firms leased a combined 28,976 sq ft at..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code