GIFT Power Company Limited has approached the Gujarat Electricity Regulatory Commission (GERC) seeking approval to issue a Request for Selection (RfS) document for procuring 10 megawatts (MW) of round-the-clock (RTC) renewable energy. The proposed procurement includes a potential 100% Green Shoe Option, which could allow the company to increase the contracted capacity depending on its requirements and the terms of the selection process. The initiative aims to meet the growing electricity demand in the Gujarat International Finance Tec-City (GIFT City) area while ensuring a reliable and sustainable power supply.
GIFT Power Company Limited operates as a dedicated electricity distribution licensee in the greenfield development area of GIFT City. The company has highlighted the rapid expansion of residential, commercial and infrastructure projects as a key factor behind the expected increase in electricity consumption. Several high-rise residential and commercial buildings are anticipated to be completed in the coming years, creating additional demand for dependable electricity services.
To address this expected growth, the company plans to establish long-term power procurement arrangements that can provide a consistent supply of electricity. The proposed procurement is also intended to help the distribution licensee meet its universal service obligations and comply with applicable Renewable Purchase Obligations (RPO) and Energy Storage Obligations (ESO).
In its petition before GERC, GIFT Power Company has requested certain deviations from the standard guidelines issued by the Ministry of Power for the procurement process. These proposed modifications are intended to address project-specific requirements and improve the commercial viability of the renewable energy procurement.
One of the key requests involves changing the power delivery point from the Central Transmission Utility (CTU) interconnection to the periphery of the State Transmission Utility (STU). According to the proposal, this adjustment would help the company manage landed power costs more effectively. The delivery point is an important consideration in determining the overall cost of electricity supplied to consumers.
The company has also sought relaxation of the standard restriction that limits a single bidder to receiving 50% of the total contracted capacity. It has requested that this cap be removed to provide greater flexibility in selecting bidders and potentially secure competitive tariffs. Additionally, the petition proposes provisions to address delays arising from the non-readiness of transmission infrastructure, which could otherwise affect the scheduled commencement of power supply.
The proposed power procurement arrangement includes long-term power purchase agreements (PPAs) with a tenure of 25 years. The agreements are intended to provide price stability and reduce the distribution licensee’s exposure to fluctuations in electricity prices in the open market.
The proposed RTC renewable energy supply is expected to combine renewable generation with energy storage systems to ensure firm and dispatchable power availability. Such arrangements can help address the intermittent nature of solar and wind generation while supporting reliable electricity delivery.
Following preliminary directions from GERC, public notices concerning the petition have been published in major newspapers to invite comments and suggestions from stakeholders. The regulatory process will allow interested parties to present their views before the commission considers the company’s requests and the proposed procurement framework.
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