GERC Clears Torrent Power’s Proposal to Lift 50% Capacity Cap in 200 MW Bid

The Gujarat Electricity Regulatory Commission (GERC) has partially approved deviation requests filed by Torrent Power Limited from the Ministry of Power guidelines governing competitive bidding for renewable energy procurement. The Commission allowed two of the four deviations sought by the utility, while rejecting the remaining two after examining their implications for tariff discovery and contractual discipline.

Torrent Power had approached the regulator seeking approval to deviate from standard bidding provisions as it plans to procure 200 MW of renewable energy capacity to meet rising Renewable Purchase Obligation (RPO) requirements, which are expected to reach 43.33% by FY2030.

Removal of 50% Cap

Among the requests, the Commission approved the removal of the 50% cap on capacity allocation to a single bidder, noting that such a restriction could limit competition and prevent discovery of the lowest tariff in a relatively small 200 MW tender. It also approved a clause protecting developers from penalties in case of transmission network delays caused by Central or State Transmission Utilities, stating that such risks are beyond the control of project developers.

However, GERC rejected Torrent Power’s request to remove the 175-hour threshold for generation compensation in case of grid unavailability or reduced offtake. The Commission observed that the threshold is a balanced policy measure under central guidelines and removing it could create open-ended financial liabilities for the distribution licensee.

GERC Declines Request 

The regulator also declined the utility’s request to retain discretion over termination of PPAs for projects delayed beyond six months, noting that similar requests had been rejected earlier and that contractual discipline must be maintained.

GERC added that while it had earlier granted in-principle approval to allow Torrent Power to initiate the bidding process, the final order independently evaluated each deviation request on its merits.