Torrent Power’s 450 MW Wind-Solar Hybrid Tariff Approval: GERC Deliberations And Future Steps

On 10th July 2024, the Gujarat Electricity Regulatory Commission (GERC) held a hearing regarding the petition filed by Torrent Power Limited (TPL). The petition sought the approval of the tariff discovered through a competitive bidding process for procuring power from grid-connected wind-solar hybrid power projects.

The process began with TPL issuing a tender on 16th January 2024 and publishing a notice on 17th January 2024 for the procurement of 300 MW of power, with an additional 150 MW available under a Greenshoe option. The deadline for bid submission was initially set for 7th February 2024 but was later extended to 11th March 2024. Six companies participated in the pre-bid meeting held on 25th January 2024. Eventually, two bidders, Torrent Power Limited and Purvah Green Power Private Limited, qualified for the reverse auction conducted on 15th March 2024. TPL emerged as the successful bidder with a tariff of ₹3.65 per unit for 300 MW.

Considering the demand-supply situation and the need for additional renewable energy sources, TPL decided to exercise the Greenshoe option to procure an additional 150 MW at the same tariff of ₹3.65 per unit. The Commission queried about the recent tariffs discovered in similar tenders issued by GUVNL and SECI, noting the differences in tariffs and capacity utilization factors (CUF).

The Commission requested TPL to submit additional details and justifications for the differences in tariffs and CUF, including a report generated from the Bharat-electronic tender web portal after the e-reverse auction. The Commission directed TPL to provide these details within ten days and reserved the matter for further orders. The session concluded with the Commission acknowledging the submissions made by TPL and setting the next steps for finalizing the tariff adoption.