GERC Approves GUVNL’s Power Procurement At INR 4.92–INR 5.72/kWh For Winter Demand

The Gujarat Electricity Regulatory Commission (GERC) has approved Gujarat Urja Vikas Nigam Limited’s (GUVNL) short-term power procurement plan to meet projected peak demand deficits during the winter period. The arrangement will cover six months from October 1, 2026, to March 31, 2027, with power procured through tariffs discovered on the Central Government’s DEEP e-bidding portal.

GUVNL, which undertakes bulk power procurement for Gujarat’s four distribution companies, had projected peak electricity demand between 18,700 MW and 24,350 MW during the period. Against this requirement, the state could face peak supply deficits ranging from 1,467 MW to 5,115 MW.

GUVNL currently has access to around 21,633 MW of conventional power capacity and 17,686 MW from renewable energy sources. However, the intermittent nature of renewable generation requires adequate firm power capacity to maintain supply during peak demand periods. The company also cited volatility in electricity exchange prices and elevated international fuel costs as factors supporting advance procurement through a competitive bidding process.

Following an e-tender issued on July 29, 2026, GUVNL received technical bids from 10 bidders representing 27 generating sources. All bidders were declared technically qualified by the Bid Evaluation Committee. Financial bids were subsequently opened, followed by an e-reverse auction on August 6, 2026. The shortlisted traders reduced their initial offers to match the lowest discovered tariffs.

The approved procurement includes 1,200 MW at ₹5.68 per kWh for October 2026. For November, GUVNL will procure 890 MW at ₹4.94 per kWh from November 1 to 15 and 940 MW at the same tariff from November 16 to 30. The arrangement further includes 500 MW at ₹4.92 per kWh in December, 500 MW at ₹5.25 per kWh in January 2027, 500 MW at ₹5.47 per kWh in February, and 637 MW at ₹5.72 per kWh in March.

During the September 10 hearing, GUVNL stated that the discovered tariffs were below the ₹6–₹7 per kWh rates seen in similar short-term procurement tenders conducted by some other states.

Letters of Award were issued to successful trading entities, including PTC India, Jindal Power, Tata Power Trading, Powerpulse Trading Solutions, Ambitious Power Trading, Manikaran Power, NTPC Vidyut Vyapar Nigam and Arunachal Pradesh Power Corporation.

In its September 17, 2026 order, GERC concluded that GUVNL had followed the applicable competitive procurement process under Sections 63 and 86(1)(b) of the Electricity Act, 2003, along with the Commission’s 2013 Procurement Guidelines. The Commission consequently adopted the discovered tariffs and approved the short-term power procurement arrangement.