The Gujarat Electricity Regulatory Commission (GERC) has approved a tariff of ₹2.60 (~$0.0297)/kWh discovered by Gujarat Urja Vikas Nigam (GUVNL) to procure power from 250 MW of solar projects, along with an additional 250 MW under the greenshoe option.

The Commission also allowed the execution of power purchase agreements (PPAs) with the successful bidders for 25 years from the projects’ scheduled commissioning date.

Background

In January 2025, GUVNL issued a tender to procure power from 250 MW of solar projects. The tender also included a greenshoe option for an additional 250 MW.

The bids were opened, and three bidders participated. After the technical evaluation, all three bidders qualified for the financial bid opening. In the e-reverse auction, the lowest tariff discovered was ₹2.60 (~$0.0297)/kWh. Welspun Renewable Energy won 50 MW, Avaada Energy secured 100 MW, and SAEL Industries bagged 100 MW, all at ₹2.60 (~$0.0297)/kWh. Additional capacity under the greenshoe option was offered to the bidders at the same tariff.

GUVNL approached GERC to approve the discovered tariffs.

It argued that the tariff discovered was competitive and in line with recent solar tariffs in other tenders. GUVNL submitted that the procurement would help meet the state’s renewable purchase obligation (RPO) targets and contribute to the growth of renewable energy. It also requested approval for signing the PPAs with the successful bidders.

The winning bidders filed submissions confirming acceptance of the tariff and the terms of the tender.

Commission’s Analysis

GERC noted that the bidding was conducted transparently with clear eligibility criteria and that the e-reverse auction ensured competitive price discovery.

The Commission reviewed the tariff of ₹2.60 (~$0.0297)/kWh in the context of prevailing solar tariffs in other recent tenders and found it to be comparable. It also considered the financial viability of the projects and the long-term benefits to consumers in the form of affordable renewable energy.

GERC recognized the role of such procurements in enabling the state to meet its RPOs and in promoting investment in renewable energy infrastructure. It emphasized that the timely commissioning of the projects would be essential to realize these benefits and therefore linked its approval to the timelines specified in the bidding documents.

After considering the facts, submissions, and compliance with legal provisions, the Commission approved the tariff of ₹2.60 (~$0.0297)/kWh and allowed GUVNL to execute the PPAs with the successful bidders for 25 years from the scheduled commissioning date.

Subscribe to Mercom’s real-time Regulatory Updates to ensure you don’t miss any critical updates from the renewable industry.