The Gujarat Electricity Regulatory Commission has approved a major short-term power purchase plan for Gujarat Urja Vikas Nigam Limited to ensure a reliable electricity supply during the upcoming summer months. The approval, finalized in late February 2026, allows GUVNL to procure power for four months, from March 1 to June 30, 2026, when demand is expected to rise sharply.

According to the utility, Gujarat may face a peak power deficit of up to 3,042 MW during this period. Although the state has added significant renewable energy capacity in recent years, officials pointed out that renewable power is “infirm” in nature, meaning it is not available round the clock. Solar and wind generation depend on weather conditions and time of day, which makes it necessary to arrange firm conventional power to maintain grid stability and provide uninterrupted electricity to consumers.

GUVNL also informed the Commission that power availability and prices in national power exchanges have been highly volatile. Due to uncertainty in short-term market rates, the utility decided to secure supply in advance through a transparent competitive bidding process conducted on the Ministry of Power’s DEEP portal.

The bidding process attracted seven qualified bidders, including major trading and generation companies such as NTPC Vidyut Vyapar Nigam Limited, Tata Power Trading Company, and Adani Power through Power Pulse Trading Solutions. After multiple rounds of e-reverse auctions, GUVNL finalized monthly power procurement at competitive tariffs.

For March 2026, 800 MW was secured at ₹5.44 per unit. In April 2026, 290 MW was contracted at ₹6.82 per unit. For May 2026, 800 MW was finalized at ₹6.65 per unit, and in June 2026, 800 MW was arranged at ₹6.04 per unit.

The Commission observed that these discovered tariffs are significantly lower than the cost of generating electricity from gas-based power plants, which currently ranges between ₹10.24 and ₹15.66 per unit. This, it noted, makes the procurement economically justified.

In its final order, the Commission confirmed that the entire procurement process followed the required guidelines for transparency and competitive bidding. While approving the petition, it directed GUVNL to maintain transparency by publicly disclosing the names of successful bidders along with the discovered tariffs. The arrangement is expected to protect consumers in Gujarat from sharp price spikes that often occur in the short-term market during peak summer demand.