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The Gujarat Electricity Regulatory Commission recently heard a petition filed by MPSEZ Utilities Ltd. (MUL). The petition sought approval for the adoption of a tariff discovered through a competitive bidding process for the procurement of 1,100 MW of power. This procurement was aimed at ensuring a reliable power supply to consumers in the Mundra area of Gujarat, which is the area MUL serves as a distribution licensee.
To meet the increasing demand for electricity in its license area, MUL proposed purchasing this power under a long-term agreement. This agreement involved a partnership on a “Design, Build, Finance, Own, and Operate” (DBFOO) basis. MUL had already entered into long-term power purchase agreements with various power producers, including thermal generators and wind-solar hybrid projects. However, due to expected expansions of existing units and the addition of new units in the license area, MUL anticipated a significant rise in demand.
To address this growing demand, MUL initiated a competitive bidding process to procure 2,077 MW of power. After evaluating the bids, MUL selected five qualified bidders, offering a combined capacity of 2,277 MW. The competitive bidding process was conducted through the DEEP portal, and MUL issued a request for proposals (RFP) in February 2023. The bids were evaluated based on technical and financial criteria.
During the evaluation, MUL conducted a pre-bid meeting to address queries from the prospective bidders and made necessary amendments to the bidding documents. The final technical and financial bids were opened in April and May 2024, respectively. The successful bidders were Mahan Energen Limited and Adani Power Limited, who were awarded a total of 1,100 MW. Mahan Energen Limited offered the lowest tariff, making it the preferred bidder.
MUL finalized the power supply agreements in July 2024 and submitted the petition for approval of the discovered tariff to the commission. After considering the submissions and the competitive bidding process, the commission granted approval for the procurement of the 1,100 MW power at the discovered tariff. |
