Torrent Power Secures 450 MW Wind-Solar Hybrid Power ₹3.65 per Unit Through Gujarat Regulatory Approval

Torrent Power Limited (TPL) has filed a petition with the Gujarat Electricity Regulatory Commission (GERC) under Section 63, read with Section 86(1)(b) of the Electricity Act, 2003. The petition seeks the adoption of a tariff discovered through a competitive bidding process for the procurement of power from grid-connected wind-solar hybrid projects. TPL initiated this bidding process as part of its efforts to meet the Renewable Purchase Obligation (RPO) targets specified by the commission and the Ministry of Power, Government of India.

The bidding process was conducted following the guidelines set by the Ministry of Power for tariff-based competitive bidding for procuring power from renewable energy sources. TPL invited bids for 300 MW of power with an additional 150 MW under a greenshoe option. The bidding process included a pre-bid meeting with interested parties, clarifications issued in response to queries from potential bidders, and a reverse auction. Two companies qualified for the reverse auction: Torrent Power Limited and Purvah Green Power Private Limited.

Torrent Power Limited emerged as the successful bidder with a quoted tariff of ₹3.65 per unit for 300 MW. Additionally, TPL exercised its greenshoe option, procuring an extra 150 MW at the same tariff, bringing the total capacity to 450 MW. This move aligns with TPL’s strategy to secure adequate renewable energy to fulfill its RPO requirements, as the company faces a shortfall in its RPO compliance for FY 2024-25.

The discovered tariff was reviewed in light of recent tariffs from similar bids conducted by Gujarat Urja Vikas Nigam Limited (GUVNL) and the Solar Energy Corporation of India (SECI). The comparison revealed that the tariff discovered by TPL is competitive and within the prevailing market range, considering the specific conditions and requirements set in TPL’s bidding process, such as a higher capacity utilization factor (CUF) and a mandated wind-to-solar capacity ratio.

GERC, after considering the submissions and evaluating the entire tendering process, found that the bidding process was conducted transparently and in accordance with the relevant guidelines. The commission decided to adopt the discovered tariff for TPL, allowing the company to proceed with signing power purchase agreements (PPAs) with the successful bidders. The PPAs must align with the Electricity (Late Payment Surcharge) Rules, 2022, as mandated by the commission.

This decision enables TPL to enhance its renewable energy portfolio, helping meet the growing demand for clean energy and contributing to the national goal of increasing the share of renewable energy in the overall energy mix. The adopted tariff will also facilitate TPL’s compliance with its renewable purchase obligations, ensuring a sustainable energy future for its distribution areas in Gujarat.