GRID

GERC Issues RFP for Consultancy to Draft 2026 Ancillary Services and Demand Flexibility Regulations

July 23, 2026 By Gaurav Nathani 6 min read
0:00 / 07:20

The Gujarat Electricity Regulatory Commission (GERC) has invited proposals from consultancy firms to provide technical and regulatory assistance in drafting and finalizing the “GERC (Ancillary Services and Demand Flexibility) Regulations, 2026.” According to the official Request for Proposal (RFP), the commission is seeking expert services to develop a comprehensive intra-state framework, including the preparation of a Concept Paper and the Statement of Reasons (SoR).

Industry stakeholders have noted the exceptionally tight 15-day window for bid preparation, with the submission deadline set for July 31, 2026, at 6:00 PM IST. This compressed timeline underscores the urgency GERC has placed on establishing a robust regulatory structure to manage the state’s evolving grid requirements.

Regulatory Context and Strategic Objectives

The initiative follows the integration of large-scale renewable energy and the subsequent need for advanced operational capabilities. While the Central Electricity Regulatory Commission (CERC) has established inter-state frameworks through the Ancillary Services Regulations (2022) and the Indian Electricity Grid Code (IEGC) 2023, GERC is now moving to bridge the gap at the intra-state level.

This regulatory push is heavily driven by national policy intelligence. The RFP explicitly cites guidance from the Forum of Regulators (FoR), the Central Electricity Authority (CEA), and a critical Ministry of Power (MoP) letter dated December 2, 2025. That MoP directive encouraged State Commissions to notify regulations on demand flexibility, provided such measures do not jeopardize critical investments in firm and flexible capacity required for base demand.

The primary objectives of the assignment include:

  • Intra-State Framework Implementation: Establishing rules for the identification, procurement, scheduling, dispatch, monitoring, and settlement of ancillary services.
  • Demand Flexibility Architecture: Creating a framework for demand response involving aggregators, energy storage systems, and prosumers.
  • Stakeholder Delineation: Defining roles and obligations for the State Load Despatch Centre (SLDC), distribution licensees, and service providers.
  • Regulatory Harmonization: Aligning state rules with the Electricity Act 2003, IEGC 2023, and the GERC State Grid Code while maintaining state-specific relevance.

Defined Regulatory Scope of the 2026 Framework

The consultant is tasked with developing a framework that addresses several high-level technical and commercial requirements. As per the Source Context, the scope must include:

  • Categorization of Services: Defining Secondary Reserve Ancillary Services (SRAS), Tertiary Reserve Ancillary Services (TRAS), reactive power/voltage support, and black-start procedures.
  • Demand Flexibility Products: Standardizing baseline methodologies, measurement protocols, and eligibility for resource aggregation.
  • Procurement and Dispatch: Drafting mechanisms for mandatory, contracted, or market-based procurement and defining merit-order and curtailment provisions.
  • Commercial Mechanisms: Detailing compensatory payment structures, cost recovery, and settlement of ancillary services charges.
  • Monitoring and Verification: Establishing telemetry requirements, compliance audits, and penalty/incentive structures.

Consultant Responsibilities and Deliverables

The scope of work demands a deep study of existing CERC, IEGC, and DSM frameworks. The consultant must perform a resource assessment across Gujarat’s energy mix—including thermal, gas, hydro, pumped storage, battery energy storage systems (BESS), and flexible loads—while also reviewing international practices to draw implementable lessons for the state.

The assignment follows a three-month timeline from the Letter of Award (LoA). The payment schedule is tied to the following specific milestones:

Milestone / DeliveryTimelinePayment
Award of contract and execution of agreementDate of signing the Agreement10%
Submission of (i) Concept paper, (ii) Draft GERC (Ancillary Services and Demand Flexibility) Regulations, 2026Within four weeks of the signing of the agreement25%
Submission of draft of detailed Statement of Reasons dealing with and incorporating the decision of the Commission on the Comments / Suggestions of the StakeholdersWithin three Weeks from the date of public hearing25%
Preparation, discussion and finalization of Regulations and Statement of Reasons (SoRs)Within Two weeks from the date of submission of analysis of Draft SoR40%

Bidder Eligibility and Qualification Standards

GERC has set stringent technical and financial thresholds. Bidders must have at least 10 years of business operation in the Indian power sector and must have completed at least four assignments for power utilities or regulators involving the preparation of regulations.

The technical track record requires at least three assignments in specialized areas such as:

  • General Network Access (GNA) and ISTS studies.
  • Ancillary Service, Inertia, or Frequency Response frameworks.
  • Grid Codes, DSM, or Renewable Integration studies.

Financial requirements include a minimum turnover of ₹5 Crores in each of the last three financial years (FY 2022-23 to FY 2024-25). Notably, the firm must maintain a positive net worth in each of those three years. Additionally, the firm must have at least 10 full-time power sector professionals on its payroll in India.

Expert Team Composition Requirements

The project requires a dedicated team of experts with significant experience in regulatory and utility advisory:

Resource PersonMinimum Requirements
Project Director (1 No.)20 years of power sector experience
Project Manager (1 No.)12 years of power sector experience
Regulatory Expert (1 No.)10 years of experience with electricity regulators
Project Executives (3 Nos.)3 years of experience with regulators, government, or utilities

Selection Methodology and Evaluation Weights

Selection will be conducted via the Quality and Cost-Based Selection (QCBS) method, with a 70% technical and 30% financial weightage. To qualify for financial bid opening, a bidder must secure a minimum technical score of 80 out of 100.

Technical scores are allocated as follows:

  • Relevant Experience: 35 Marks
  • Proposed Methodology: 25 Marks
  • Personnel Qualification and Competence: 40 Marks

Submission Logistics and Timeline Summary

The estimated project duration is three months. Proposals must be submitted in separate, sealed envelopes for the “Technical Bid” and “Financial Bid.” In a critical logistical requirement, bidders must also include a soft copy of the technical proposal in Word format.

Proposals must be addressed to:

The Secretary Gujarat Electricity Regulatory Commission 6th Floor, GIFT ONE, Road 5C, Zone 5 GIFT City, Gandhinagar, Gujarat – 382050

According to the official Notice Inviting Request for Proposal (RFP) issued by the Gujarat Electricity Regulatory Commission (GERC), interested parties can access the official tender details and check bidding announcements through the following link:

Official Website: www.gercin.org

The Commission specifically directs users to visit the “Latest News” section of their website for more details and further announcements regarding this assignment.

As per the RFP document, the last date for receiving bids is on or before 31 July 2026 at 6:00 PM IST. Technical and financial bids must be submitted in separate sealed envelopes to the Secretary, GERC at their office in GIFT City, Gandhinagar.

Official Sources:

You can access the specific tender documents and draft notifications by visiting the “Latest News” or “Tenders” sections on the GERC official website.

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