Gujarat Urja Vikas Nigam (GUVNL) has cancelled tenders for 2,000 MW of short-term power for April, May and June. A GUVNL official told FE that tariffs quoted in this auction ranged between Rs 4.79 and Rs 8 per unit, defeating the purpose of cost optimisation for which the tenders were invited. The average cost at which Gujarat buys thermal power is Rs 3.49/unit. Participants in the auction included companies such as PTC, DVC, Tata Power and Manikaran Power.
The tender invitation was partly triggered by Adani Power and Essar Power curtailing supplies from their respective imported coal-based power plants in the state after the Supreme Court disallowed rise in imported coal prices to be passed through to electricity tariffs. The official added that instead of buying short-term power at such high rates, it was more economical to use a part of the state’s 3,000 MW gas-based power plant capacity to cater to the increased summer demand.
Spot markets, where the average rates are currently subdued below Rs 4/unit, is also a viable option for meeting the additional demand. Gujarat procured 658.7 million units of electricity in February from spot markets, the highest among all the states in the month.