GERC Issues Tender for Consultancy Services to Develop State Resource Adequacy Framework

In a move to fortify long-term grid resilience and move the state toward a structured planning model, the Gujarat Electricity Regulatory Commission (GERC) has initiated the procurement of specialized consultancy services to develop a comprehensive Resource Adequacy (RA) Framework. This regulatory intervention, headquartered in GIFT City, Gandhinagar, is designed to ensure Gujarat maintains a robust supply-demand balance by transitioning away from ad-hoc power procurement toward scientifically modeled, long-term resource security.

Key Tender Milestones and Selection Criteria

The GERC will utilize a rigorous evaluation process to ensure the selected firm possesses the technical depth required to manage complex power system modeling. Technical and financial proposals must be submitted in separate sealed envelopes to the Secretary of GERC.

Bidder Eligibility and Technical Requirements

Participating firms must demonstrate significant institutional experience and a deep bench of power sector expertise to meet the following mandatory qualifications:

• Operational History: A minimum of 15 years of operational experience as a registered company in India.
• Sector Track Record: A proven history of providing consultancy services to electricity regulators and power utilities.
• Professional Staffing: A minimum of ten full-time professionals on staff with specialized expertise in the power sector.
• Neutrality Mandate: Strict “No Conflict of Interest” requirement regarding any distribution licensees operating within the state of Gujarat to ensure impartial regulatory development.

Scope of Work: The Three Key Assignments

The consultancy is divided into three distinct phases aimed at establishing the regulatory and technical architecture for Gujarat’s power future. While the drafting phase is accelerated, the technical evaluation and capacity building will align with the broader Multi-Year Tariff (MYT) schedule.

Assignment 1: Regulatory Drafting

The consultant is tasked with drafting the “GERC (Framework for Resource Adequacy) Regulations.” This includes a comparative study of 5–7 leading states to identify national best practices. Crucially, the consultant must prepare an Explanatory Memorandum, providing the legal and technical justification necessary for the framework, and support the Commission through the public consultation process. This assignment must be completed within three months of the contract award.

Assignment 2: Technical Evaluation and Probabilistic Modeling

Leveraging advanced energy modeling tools, the consultant will perform Probabilistic Reliability Assessments and determine the Loss of Load Probability (LOLP) for the state grid. The firm will evaluate Resource Adequacy Plans submitted by the State Transmission Utility (STU) and the State Load Despatch Centre (SLDC) to identify future shortages or surpluses. This work is pivotal for the Fourth Multi-Year Tariff (MYT) Control Period, as it establishes the base load and peak requirements that will dictate state tariff structures for several years.

Assignment 3: Institutional Knowledge Transfer

To ensure the long-term sustainability of the framework, the consultant will provide technical training and “handholding” for GERC officials. This Institutional Knowledge Transfer focuses on energy modeling and power system analysis, empowering the Commission to independently evaluate future RA plans and maintain grid stability after the consultancy concludes.

Regulatory Context and Legal Framework

This tender is a direct implementation of the Electricity (Amendment) Rules, 2022, which mandates that state regulators ensure distribution utilities maintain sufficient resources—specifically including generation and storage—to meet both current and future demand.

By firming up state grid resilience and mitigating exposure to volatile merchant power markets, GERC aims to replace ad-hoc procurement with a sophisticated supply-demand model. This initiative is a critical step in integrating renewable energy and storage into Gujarat’s long-term planning, ensuring a reliable and cost-effective electricity supply across the state’s industrial and domestic sectors.