The Gujarat Electricity Regulatory Commission (GERC) has approved a tariff of Rs 4.87 per unit for the procurement of 250 MW of Firm and Dispatchable Renewable Energy (FDRE) backed by Energy Storage Systems (ESS) by Torrent Power Limited (TPL).
The order was issued on TPL’s petition under Section 63 read with Section 86(1)(b) of the Electricity Act, 2003. The procurement will support Torrent Power’s distribution licence areas in Ahmedabad, Gandhinagar, Surat and Dahej.
Torrent Green Energy Private Limited (TGEPL) emerged as the successful bidder through a competitive bidding process followed by an e-reverse auction. The procurement initially covered 200 MW, with another 50 MW secured through the Greenshoe option. The additional capacity is intended to help Torrent Power meet its long-term Renewable Purchase Obligations (RPO) and Energy Storage Obligations (ESO).
Torrent Power launched the tender in August 2025 to address an anticipated shortfall in its renewable energy procurement. The company estimates that its existing renewable energy portfolio, comprising solar, wind, hybrid and rooftop projects, will meet around 31.76% of its energy requirement by FY 2028-29. However, this remains below Gujarat’s RPO trajectory target of 41.36%.
The company said early procurement was necessary because new grid-connected renewable energy projects generally require 24 to 30 months for commissioning. The FDRE tender has been structured around a demand-following supply profile designed to match Torrent Power’s varying electricity requirements.
Under the tender conditions, the required supply ranges from 50 MW to 120 MW during off-peak periods and can reach 200 MW during peak hours. Developers are required to maintain a minimum Demand Fulfilment Ratio (DFR) of 75% across both peak and off-peak periods.
The tender also includes financial penalties for non-compliance. A shortfall in the required demand fulfilment attracts a penalty equivalent to 1.5 times the applicable PPA tariff. The mechanism is intended to ensure dependable renewable power availability and reduce the distribution utility’s exposure to expensive market purchases during periods of high demand.
Six companies submitted technical bids representing a combined capacity of 625 MW. Five bidders subsequently qualified for the e-reverse auction conducted in September 2025. TGEPL emerged as the lowest bidder with a tariff of Rs 4.87 per unit.
Following the auction, Torrent Power exercised the Greenshoe option to procure an additional 50 MW for its Dahej licence area. The total procurement is expected to provide annual energy supplies ranging from 807 million units (MUs) to 1,076 MUs.
GERC also reviewed certain deviations in the tender conditions concerning generation compensation and project delay provisions. Torrent Power subsequently aligned the conditions with the Commission’s earlier directions and obtained written consent from TGEPL.
The Commission found the bidding process transparent and approved the discovered tariff. It directed Torrent Power to execute 25-year Power Purchase Agreements with TGEPL, comply with the Electricity (Late Payment Surcharge) Rules, 2022, and submit executed agreements to the Commission. Torrent Power must also publish the final tariff details on its official website to ensure transparency.
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