GERC Clears 25-Year Hybrid Power Pact for GIFT City at INR 3.70/unit

In a major boost to Gujarat’s renewable energy ambitions, 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..

The approval follows a petition filed by GIFT PCL seeking clearance for a long-term arrangement to meet electricity demand within the GIFT City licensee area. The agreement secures 9.9 MW of hybrid solar and wind power at a tariff of INR 3.70 per unit, well below prevailing power exchange rates, which range between INR 4.30 and INR 5.05 per unit.

The hybrid project, which combines solar and wind energy, is slated for commissioning by February 2026. It will feed into the Gujarat State Transmission Utility (STU) grid periphery, delivering around 43 million units (MUs) of electricity annually to Gujarat International Finance Tec-City (GIFT City). This will help cater to the city’s rapidly growing energy needs, which are expected to rise from 75 MUs in FY2026 to 198 MUs by FY2030.

GIFT PCL had conducted a transparent, expression-of-interest-driven competitive bidding process that attracted offers from four developers. Prozeal Green Energy emerged as the lowest bidder, quoting INR 3.70 per unit. CleanMax Enviro Energy and AMPIN Energy followed with bids of INR 3.80 and INR 3.85 per unit, respectively. 

According to the agreement, Prozeal Green Energy is required to maintain a minimum annual plant capacity utilization factor (CUF) of 50 percent. Any shortfall will attract penalties, ensuring reliability of power supply. GERC also mandated Prozeal to furnish a performance bank guarantee of ₹59.4 lakh, calculated at ₹6 lakh per MW. GIFT PCL has been instructed to submit the final PPA to the Commission within 30 days and make the tariff details publicly available on its website.

Commission noted that the agreement not only promotes price stability for GIFT City’s consumers but also supports Gujarat’s compliance with renewable purchase obligations (RPOs).

This project, being under the 10 MW capacity threshold set by Central Guidelines in August 2023, qualifies for quicker intra-state clearances,an added advantage that could expedite the rollout of clean energy infrastructure in one of India’s most prominent financial districts.