GIFT Power Company Limited has filed a petition with the Gujarat Electricity Regulatory Commission (GERC) seeking approval for a long-term power purchase agreement (PPA). The PPA is for the procurement of 9.90 MW of hybrid renewable energy, combining solar and wind, to meet the rising power demand of the GIFT City area. The agreement proposes a fixed tariff of ₹3.70 per unit for a period of 25 years. This tariff was discovered through a transparent competitive bidding process initiated via an Expression of Interest (EOI) released on 5th August 2024.
The licensee area of GIFT City is a greenfield zone where power demand is expected to grow significantly. Projections suggest the base demand will rise from 5 MW in FY 2024-25 to 20 MW by FY 2029-30, with peak demand reaching 40 MW. To address this growth, GIFT Power initiated a long-term procurement plan to secure a cost-effective and reliable power supply.
The company received four bids from Clean Max, SunSure, AMPIN Energy, and Prozeal Green Energy. After evaluation, Prozeal Green Energy was selected as the successful bidder for offering the lowest landed cost of ₹4.30 per unit and meeting the requirement to commence supply before March 2026. The selection followed a transparent process involving bid opening, technical and financial qualification checks, and techno-commercial evaluation.
Key features of the proposed PPA include a capacity utilization factor (CUF) of 50% to 55%, delivery at the Gujarat STU point, monthly billing, and a payment security mechanism covering up to 120 days. A performance bank guarantee of ₹6 lakhs per MW will also be required. In case the minimum CUF is not achieved, a penalty of 50% of the PPA tariff for the shortfall energy will apply.
The proposal was approved by GIFT PCL’s Board of Directors in January 2025, and a Letter of Intent (LOI) was issued to Prozeal on 13th December 2024. The petition seeks GERC’s final approval under Sections 63 and 86(1)(b) of the Electricity Act, 2003. The Commission acknowledged that the procurement process was aligned with regulatory guidelines and noted the necessity for long-term arrangements to shield against volatile short-term market conditions. A final decision on tariff adoption and PPA execution is awaited from GERC.
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