The Gujarat Electricity Regulatory Commission (GERC) has authorized a significant short-term power procurement plan aimed at ensuring a stable electricity supply for Gujarat Urja Vikas Nigam Limited (GUVNL) during the upcoming summer months. This approval, finalized in late February 2026, enables GUVNL to acquire power for a four-month period from March 1 to June 30, 2026, coinciding with a projected surge in demand.
GUVNL has indicated that the state may experience a peak power deficit of up to 3,042 MW throughout this timeframe. Despite substantial investments in renewable energy capacity in recent years, officials have pointed out that the intermittent nature of renewable sources, such as solar and wind, necessitates the procurement of reliable conventional power to ensure grid stability. The availability of renewable energy fluctuates with weather conditions and the time of day, which can hinder consistent electricity supply to consumers.
The utility has also raised concerns about the volatility of power availability and pricing in national power exchanges. In response to the uncertainty surrounding short-term market rates, GUVNL opted for a proactive approach, securing a supply in advance through a transparent competitive bidding process on the Ministry of Power’s DEEP portal.
The bidding process attracted participation from seven qualified bidders, including prominent trading and generation firms such as NTPC Vidyut Vyapar Nigam Limited, Tata Power Trading Company, and Adani Power via Power Pulse Trading Solutions. Through multiple rounds of e-reverse auctions, GUVNL successfully finalized monthly power procurement at competitive tariffs.
For March 2026, GUVNL secured 800 MW at ₹5.44 per unit. In April, the utility contracted 290 MW at ₹6.82 per unit. For May, 800 MW was finalized at ₹6.65 per unit, and in June, 800 MW was arranged at ₹6.04 per unit.
The GERC noted that these discovered tariffs are significantly lower than the costs associated with generating electricity from gas-based power plants, which currently range from ₹10.24 to ₹15.66 per unit. This price advantage underscores the economic justification for the procurement process.
In its final order, the Commission confirmed that GUVNL adhered to the necessary guidelines for transparency and competitive bidding. The approval includes a directive for GUVNL to publicly disclose the names of successful bidders along with the tariffs discovered through the bidding process. This arrangement aims to shield consumers in Gujarat from the sharp price spikes commonly observed in the short-term market during periods of peak summer demand.
