GIFT City To Continue Getting Green Power For Short-Term

The Gujarat Electricity Regulatory Commission (GERC) has approved a petition filed by GIFT Power Company Ltd (GIFTPCL), a subsidiary of Gujarat International Finance Tec-City Company Ltd, seeking to extend its short-term power purchase agreement (PPA) with M/s PCBL for 4 MW of round-the-clock (RTC) power supply.

The extension covers the period from June 1, 2025, to May 31, 2026, at a revised tariff of ₹5.20 per unit, under the Medium Term Open Access (MTOA) framework.

Prozeal's Hybrid Plant

GIFTPCL, a distribution licensee for the GIFT City area, stated that the extension was essential to meet its base demand of approximately 5 MW until a long-term renewable hybrid power supply commences in June 2026. The company has commissioned a 4.95 MW solar PV plant and signed a long-term PPA with Prozeal Green Energy Ltd for 9.9 MW of hybrid power.

According to the petition, the revised tariff is lower than the previous rate of ₹5.40 per unit, and the estimated landed cost of ₹5.60 per unit is below the ₹5.87 per unit cost of power procured from the Day-Ahead Market (DAM) segment of the power exchange. GIFTPCL argued that the extension would help insulate consumers from market volatility and ensure reliable supply, particularly during evening and night peaks when grid constraints are common.

The company justified the extension under Clause 25 of the original PPA, which allows amendments by mutual agreement, and cited provisions of GERC’s procurement guidelines that permit non-competitive procurement through the Memorandum of Understanding (MoU) route in exceptional situations.

Econiomic Rationale

In its order dated June 13, 2025, the GERC acknowledged the utility’s obligation to ensure uninterrupted supply and found the tariff negotiation process with PCBL to be commercially prudent. It noted that the economic rationale was valid, particularly when compared with market alternatives.

The Commission approved the one-year extension and directed that all other terms of the original PPA, signed on September 3, 2024, would remain unchanged. It also instructed GIFTPCL to submit a copy of the signed supplemental PPA within 30 days, along with an affidavit confirming compliance with the approved terms.

The approval underscores the regulator's recognition of transitional supply arrangements amid evolving renewable energy integration in Gujarat’s power sector.