In a strategic move to bridge a projected 9.6% shortfall in its Renewable Purchase Obligation (RPO) by FY 2028-29, the Gujarat Electricity Regulatory Commission (GERC) has adopted a tariff of ₹4.87/kWh for the procurement of Firm and Dispatchable Renewable Energy (FDRE). The decision, issued in Petition No. 2660 of 2026, was presided over by a Coram comprising Chairman Pankaj Joshi and Members Hiren Shah and Jatin N. Thakkar.
The order approves the procurement of a total capacity of 250 MW by Torrent Power Limited (TPL), acting as the distribution licensee for its Ahmedabad, Gandhinagar, Surat, and Dahej license areas. The capacity comprises a 200 MW base quantum and a 50 MW Greenshoe option, with the integration of Energy Storage Systems (ESS) mandated to ensure the supply remains firm and dispatchable. The Commission acted under its powers under Section 63 and Section 86(1)(b) of the Electricity Act, 2003.
Bidding Process and Regulatory Rigor
The Commission confirmed that the competitive bidding process followed the Ministry of Power (MoP) guidelines dated June 9, 2023, and its subsequent amendments. An Evaluation Committee certified that the process was transparent and compliant with federal standards. The procurement journey reached several critical milestones:
- RfS Issuance: August 8, 2025
- Pre-Bid Conference: August 19, 2025 (12 companies participated)
- Technical Bid Opening: September 1, 2025
- e-Reverse Auction: September 5, 2025
Five bidders qualified for the e-Reverse Auction, with the results summarized below:
| Successful Bidder | Quantum (MW) | Final Quote (₹/kWh) |
| Torrent Green Energy Private Limited | 200 | 4.87 |
| Prozeal Green Energy Limited | 50 | 4.88 |
| Hexa Climate Solutions Private Limited | 75 | 4.89 |
| Acme Solar Holdings Limited | 100 | 4.90 |
| JSW Neo Energy Limited | 100 | 5.39 |
Following the auction, TPL exercised its 50 MW Greenshoe option for the Dahej license area at the discovered tariff of ₹4.87/kWh. This additional capacity is specifically intended to fulfill a projected RPO requirement of 161–215 MUs in the Dahej area.
Technical Supply Mandates and Operational Flexibilities
The tender is structured as a “demand-following” procurement, meticulously designed to align with TPL’s unique load profile. The generator is mandated to supply power across three distinct daily blocks:
- Peak Hours: 200 MW for 4 hours.
- Solar Hours: 120 MW for 8 hours.
- Balance Hours: 50 MW for 12 hours.
The Peak Hour schedule is seasonally adjusted: October to February (07:00–09:00 and 18:00–20:00) and March to September (19:00–23:00). Notably, the Petitioner retains the discretion to modify these peak hours, a critical operational detail that requires the generator to maintain high flexibility.
The generator must maintain a minimum Demand Fulfillment Ratio (DFR) of 75%. Failure to meet this threshold in either peak or off-peak hours results in a penalty of 1.5 times the PPA tariff (approximately ₹7.30/unit). TPL argued successfully that this is more stringent than SECI FDRE IV tenders; under SECI rules, generators can meet a common DFR by dumping energy during off-peak hours, whereas this GERC-approved structure penalizes failure specifically within the expensive peak windows.
RPO Targets and Strategic Justification
The procurement is a response to the escalating RPO trajectory mandated by GERC. TPL’s projections showed that without this 250 MW tie-up, its total RE coverage by FY 2028-29 would stand at only 31.76%, far below the required 41.36%.
Year-wise RPO Trajectory (%)
| Year | Wind | Hydro | Distributed RE | Other RE | Total RPO |
| FY 2024-25 | 0.67% | 0.38% | 1.50% | 27.35% | 29.91% |
| FY 2025-26 | 1.45% | 1.22% | 2.10% | 28.24% | 33.01% |
| FY 2026-27 | 1.97% | 1.34% | 2.70% | 29.94% | 35.95% |
| FY 2027-28 | 2.45% | 1.42% | 3.30% | 31.64% | 38.81% |
| FY 2028-29 | 2.95% | 1.42% | 3.90% | 33.10% | 41.36% |
| FY 2029-30 | 3.48% | 1.33% | 4.50% | 34.02% | 43.33% |
Storage RPO Targets (Energy Basis)
| Year | Storage Target |
| FY 2024-25 | 1.0% |
| FY 2025-26 | 1.5% |
| FY 2026-27 | 2.0% |
| FY 2027-28 | 2.5% |
| FY 2028-29 | 3.0% |
| FY 2029-30 | 3.5% |
Execution and Commission Directives
GERC has directed TPL to execute the Power Purchase Agreement (PPA) with Torrent Green Energy for a 25-year term. While the Commission approved deviations regarding “Maximum Capacity” and “Delay in Commissioning” caused by transmission system constraints, it took a firm stance on risk allocation by rejecting several other sought deviations.
Critically, the Commission rejected the removal of the 175-hour compensation waiver for grid unavailability. TPL had argued that removing this waiver—effectively a risk costing approximately ₹0.10/unit—was already priced into the competitive ₹4.87 tariff. By rejecting this, the Commission has effectively placed a higher burden of risk on the generator without allowing for a tariff adjustment. Additionally, the Commission rejected a deviation regarding delays in the commencement of power supply beyond six months, reinforcing strict adherence to commissioning timelines.
Finally, TPL must comply with Late Payment Surcharge (LPS) rules and publicly disclose the adopted tariff on its official website.
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