Prozeal Green To Provide Hybrid Green Power To GIFT City

Prozeal Green To Provide Hybrid Green Power To GIFT City

The Gujarat Electricity Regulatory Commission (GERC) has approved a 25-year power purchase agreement (PPA) between GIFT Power Company Ltd (GIFT PCL) and Prozeal Green Energy Ltd for the supply of 9.90 megawatts (MW) of hybrid renewable energy at a fixed tariff of ₹3.70 per unit.

The long-term deal is aimed at ensuring reliable and cost-effective electricity for Gujarat International Finance Tec-City (GIFT City), a rapidly developing greenfield smart city project near Gandhinagar. GIFT PCL, a wholly owned subsidiary of GIFT City Ltd, is the licensed electricity distributor for the area.

The agreement follows a competitive bidding process initiated by GIFT PCL in August 2024. Prozeal Green emerged as the lowest bidder (L1) with a landed electricity cost of ₹4.30 per unit and a quoted tariff of ₹3.70 per unit, securing the contract over contenders including CleanMax Enviro, Ampin Energy, and SunSure Energy.

The PPA will cover 9.90 MW of hybrid solar-wind capacity to be delivered at the Gujarat State Transmission Utility (STU) periphery. Commercial operations are expected to commence before March 31, 2026. The agreement mandates a minimum annual capacity utilisation factor (CUF) of 50%, with penalties applicable for shortfalls.

The city’s current power demand stands at a peak of 12 MW and is projected to reach 20 MW by FY2027-28, prompting GIFT PCL to seek long-term supply security. The deal offers insulation from short-term market volatility and aligns with India’s broader goals to source 50% of installed power capacity from non-fossil fuels by 2030.

Eight firms, including Adani Group and Tata Power Renewable Energy, had initially shown interest. The tender conditions were subsequently amended in September 2024 to allow bids up to 9.90 MW, extend payment security to 120 days, and fix the contract period at 25 years.

Prozeal’s winning bid was approved by GIFT PCL’s board in January 2025, and a Letter of Intent was issued in December 2024, subject to regulatory approval. The GERC’s final nod came after it determined the discovered tariff to be reasonable and the bidding process to be transparent.

Under the PPA, GIFT PCL will procure monthly energy based on SLDC data, with payment due within 10 days of invoice receipt. Remote terminal units (RTUs) will be installed for real-time monitoring at each wind turbine and solar asset allocated to GIFT.

The Commission also directed GIFT PCL to comply with all statutory and commercial obligations, incorporate provisions from the Electricity (Late Payment Surcharge) Rules, 2022, and publicly disclose the tariff and bidder details for 30 days.

The petition was filed under Sections 63 and 86(1)(b) of the Electricity Act, 2003, which govern competitively discovered tariffs and regulatory oversight of procurement. GERC concluded that the approval serves the public interest and supports Gujarat’s renewable energy and energy security goals.