Torrent Power’s 450 MW Wind-Solar Hybrid Tariff Approval: GERC Deliberations And Future Steps

Posted On - 5 August, 2024 • By - King Stubb & Kasiva

Summary

Torrent Power Limited (TPL) filed a petition with the Gujarat Electricity Regulatory Commission (GERC) seeking approval for a tariff discovered through a competitive bidding process. The tariff was for the procurement of power from grid-connected wind-solar hybrid power projects. TPL initiated the bidding process on January 16, 2024, and after multiple rounds of bidding and evaluation, Torrent Power Limited emerged as the successful bidder for 300 MW at a tariff of Rs. 3.65 per unit.[1] TPL also exercised a greenshoe option to procure an additional 150 MW from Torrent Power Limited at the same tariff.

Case Timeline

  • January 16, 2024: TPL initiated the tendering process for 300 MW of power, with an additional 150 MW greenshoe option.
  • January 25, 2024: A pre-bid meeting was held with the participation of six companies.
  • March 11, 2024: The deadline for bid submission was extended.
  • March 15, 2024: E-bidding was conducted, and two bidders qualified for the reverse auction.
  • June 28, 2024: The matter was heard by the GERC.
  • July 10, 2024: The GERC issued a daily order on the petition.

Issues Raised

  • The GERC sought clarification on the difference in the discovered tariff compared to recent tenders by GUVNL and SECI, and the declared Capacity Utilization Factor (CUF) in those bids.
  • The GERC also noted that TPL had not submitted a report generated on the Bharat-electronic tender web portal after the e-reverse auction.

Appellant’s Arguments

  • TPL argued that the bidding process was conducted transparently and competitively.
  • They justified exercising the greenshoe option due to the demand-supply situation and the need for additional wind-solar hybrid power.

Respondent’s Arguments (GERC)

  • The GERC questioned the difference in the discovered tariff compared to other recent tenders and the declared CUF.
  • They requested a report from the Bharat-electronic tender web portal and additional details regarding the bidding process.

Order

  • The GERC directed TPL to provide all details related to the bidding process within a week.
  • TPL was also instructed to submit a justification for the discovered tariff and other details on affidavit within 10 days.
  • The GERC reserved the matter for further orders after receiving the requested information.

Analysis

The case highlights the regulatory scrutiny involved in power procurement through competitive bidding. The GERC’s focus on transparency, competitive tariffs, and adherence to procedural requirements is evident. The case also emphasizes the increasing significance of wind-solar hybrid projects in India’s energy mix and the regulatory efforts to ensure their integration into the grid at fair and competitive prices.

[1] https://gercin.org/wp-content/uploads/2024/07/2360-of-2024-TPL.pdf