The Gujarat Electricity Regulatory Commission (GERC) has approved a petition filed by Gujarat Urja Vikas Nigam Limited (GUVNL) for the procurement of short-term power to meet the state’s electricity demand between August 1, 2026, and March 31, 2027. The approval was granted through an order issued on July 30, 2026, in which the Commission adopted the tariffs discovered through a competitive e-bidding process conducted on the Ministry of Power’s DEEP (Discovery of Efficient Electricity Price) portal.

As part of the approved procurement, GUVNL will purchase 793 MW of Round-the-Clock (RTC) power for August 2026 at tariffs ranging from Rs. 6.05 to Rs. 6.15 per kWh. In addition, the Commission has approved the procurement of 800 MW of peak-period power for March 2027 at a discovered tariff of Rs. 9.96 per kWh. The procurement is aimed at ensuring adequate power availability during periods of high electricity demand while maintaining reliable supply across the state.

According to GUVNL, Gujarat is expected to witness a significant rise in electricity demand over the coming months. The state’s peak demand is projected to reach around 24,350 MW, while the anticipated peak deficit could touch nearly 4,095 MW in March 2027. Although Gujarat has substantial long-term power procurement arrangements, including more than 21,500 MW from conventional generating stations and nearly 16,800 MW from renewable energy sources, the intermittent nature of renewable generation makes additional conventional power necessary during peak demand periods. The utility stated that short-term procurement would help maintain grid reliability, avoid supply shortages, and protect consumers from volatile prices in the power exchange market.

The procurement process began on June 29, 2026, when GUVNL issued public tender notices in national newspapers inviting bids for the required power supply. A three-member Bid Evaluation Committee reviewed the technical submissions, following which five bidders were declared technically qualified for the financial bidding stage. An e-reverse auction was conducted on July 8, 2026, through the DEEP portal to discover competitive tariffs. Based on the auction results, Letters of Award were issued on July 14, 2026, to Ambitious Power Trading Company Limited, Manikaran Power Limited, PTC India Limited, Powerpulse Trading Solutions Limited, and Tata Power Trading Company Limited.

While examining the petition, the Commission also reviewed the tariff of Rs. 9.96 per kWh for the peak-period power scheduled for March 2027. GUVNL submitted that the discovered price was in line with similar short-term peak power procurements undertaken by utilities in Rajasthan, Kerala, and Maharashtra, where tariffs ranged between Rs. 9.02 and Rs. 12.50 per kWh. The utility explained that peak-hour electricity prices are generally higher because of limited power availability and increased demand across the country during evening hours.

After reviewing the bidding process and procurement proposal, GERC concluded that the entire exercise had been carried out in accordance with the competitive bidding guidelines issued by the Ministry of Power and the applicable regulatory framework. The Commission approved the procurement and directed GUVNL to execute the necessary Power Purchase Agreements with the successful bidders. It also instructed the utility to publish the bidding results on its official platform to ensure transparency in the procurement process.