The Gujarat Electricity Regulatory Commission has approved a petition from Gujarat Urja Vikas Nigam to adopt tariffs for 500 megawatt (MW) of wind power capacity, enabling procurement to meet the rising Renewable Purchase Obligation trajectory of the state. As of 31 March 2026 Gujarat's total installed wind capacity stood at 5,032 MW and the state plans to increase the wind energy share from 0.67 per cent in FY 2025 to 3.48 per cent by FY 2030. The procurement will supply needs of the four distribution companies in Gujarat.

The competitive bidding process discovered tariffs between Rs3.43 per kWh and Rs3.435 per kWh. Patel Infrastructure secured 200 MW, Alfanar Power secured 100 MW at Rs3.43 per kWh and KP Energy and Powerica were each awarded 100 MW at Rs3.435 per kWh. The tender had a base requirement of 250 MW with a greenshoe option for a further 250 MW which GUVNL exercised. The commission concluded that the bidding documents were broadly aligned with Ministry of Power guidelines despite the absence of finalised standard bidding documents.

The approval gives EPC contractors and developers the legal certainty needed to execute long term power purchase agreements with tariffs fixed for 25 years, offering a more stable revenue profile compared with thermal generation. The exercise of the greenshoe option underscores the state appetite for rapid capacity addition and indicates that developers with efficient supply chains and competitive pricing will find notable opportunities in Gujarat.

Following the commission order GUVNL is authorised to sign formal agreements with the successful bidders and developers are expected to progress towards financial closure and site development. The result reinforces the viability of tariff based competitive bidding as the primary procurement mechanism for utility scale wind projects in India and supports the country's grid connected renewable ambitions.