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Gujarat Urja Vikas Nigam Limited (GUVNL) filed a petition with the Gujarat Electricity Regulatory Commission (GERC) to approve the tariff discovered through a competitive bidding process and to allow signing of Power Purchase Agreements (PPAs) for wind power projects. The original tender was issued to procure 500 MW of wind power. One of the companies, Kintech Synergy Pvt. Ltd., was selected with a quoted tariff of ₹3.24 per unit. However, GUVNL later reduced the total power to be procured from 500 MW to 430 MW. This change affected the allocations for all selected developers, including Kintech.
Due to the reduction, Kintech was given a revised allocation of 30 MW. Kintech refused to sign the PPA and took the matter to the High Court, arguing that it had participated based on the original 500 MW capacity and that the reduction would impact its planning and finances. The High Court directed GUVNL to submit Kintech’s bid documents to GERC for a decision.
GUVNL stated that the bidding documents clearly mentioned that the capacity could be changed, and Kintech had accepted those terms while participating in the bidding. They argued that Kintech was still bound to sign the PPA. The Commission reviewed the documents and agreed with GUVNL’s position. It said the flexibility to reduce the power quantity was allowed under the bidding terms and that Kintech’s bid remained valid.
The Commission ruled that the tariff of ₹3.24 per unit discovered through the bidding process should be adopted for Kintech’s revised 30 MW project. It allowed GUVNL to proceed with signing the PPA and asked both parties to move forward with implementing the project without further delay.
In a separate but related matter, GUVNL also filed another petition under Section 63 of the Electricity Act, 2003 for the adoption of tariff discovered for a 500 MW/1000 MWh Standalone Battery Energy Storage System (BESS) in Gujarat. The bidding process began on 30 August 2024, and an e-reverse auction was held on 29 November 2024. Four successful bidders quoted tariffs between ₹2,25,985 and ₹2,26,000 per MW per month. The project will be supported by the central government under the Viability Gap Funding (VGF) scheme, with a maximum grant of ₹27 lakh per MW or 30% of the capital cost, whichever is lower.
GUVNL confirmed that the substations for BESS installation were selected based on technical studies, availability of space, load patterns, and system needs. The Commission directed GUVNL to submit the full list of substations, technical standards, and safety compliances as per national and international guidelines. GUVNL agreed to file these details within a week along with certified documents from GETCO, the transmission company.
The matter has been reserved for final order by the Commission. This shows how regulatory processes guide power project implementation and ensure transparency and fairness in energy procurement.
