GERC Partially Approves Torrent Power’s Bidding Deviations For 200 MW Renewable Energy Tender

The Gujarat Electricity Regulatory Commission (GERC) issued an important regulatory order on March 6, 2026, in response to a petition filed by Torrent Power Limited (TPL). The company had requested certain deviations from national bidding guidelines for renewable energy procurement in order to manage its upcoming 200 MW tender for firm and dispatchable renewable power supported by energy storage systems.

The petition was mainly driven by the sharp rise in Renewable Purchase Obligation (RPO) targets. According to the new state regulations, TPL’s RPO requirement will increase significantly over the next few years. The company’s renewable energy obligation is expected to rise from 20.70 percent in the financial year 2024–25 to 43.33 percent by the financial year 2029–30. TPL informed the Commission that these steep targets require the company to secure long-term power supply agreements at an early stage. The company explained that most renewable power projects need around 24 to 30 months for construction and commissioning, which means procurement decisions must be taken well in advance.

After reviewing the petition, the Commission decided to partially approve the requested deviations while maintaining the integrity of national competitive bidding standards. The order reflects an attempt to balance competitive pricing with regulatory discipline in the renewable energy procurement process.

Among the requests approved by the Commission was the removal of the maximum capacity allocation limit for a single bidder. Under national guidelines, a single developer is usually restricted to winning no more than 50 percent of the total tender capacity. This rule is designed to prevent market concentration in large tenders. However, the Commission noted that TPL’s proposed project size is relatively small at 200 MW. In such a case, maintaining the 50 percent cap could limit competition and potentially lead to higher tariffs for consumers. Therefore, the Commission allowed TPL to waive this restriction to ensure better tariff discovery.

The Commission also approved a provision to protect developers in case of delays in the transmission network. A new clause will allow developers to avoid penalties if their renewable power projects are ready for commissioning but cannot be connected to the grid due to delays in the transmission infrastructure or the Grant of Network Access (GNA) process that are outside the developer’s control.

However, some of the requested changes were rejected. TPL had proposed removing the 175-hour annual threshold that applies when grid unavailability leads to generation compensation. The Commission declined this request, explaining that the threshold is an established policy decision designed to balance operational realities of the grid with commercial certainty for power developers.

Another request related to supply delays was also rejected. TPL had asked for the flexibility to extend contracts beyond the standard six-month delay period instead of automatically terminating them. The Commission did not accept this proposal, referring to a regulatory precedent set in 2021 that also involved TPL. According to the Commission, maintaining strict contractual discipline is essential to protect consumer interests.

The Commission also noted that although TPL had already initiated the bidding process based on an in-principle approval, the company must now ensure that all final agreements and tender conditions fully comply with the findings and directions outlined in this order.