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Torrent Power signs PPA with Gujarat Electricity Regulatory Commission

Monday, 01 Jul 2019

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Torrent Power has entered into a power purchase agreement (PPA) with the Gujarat Electricity Regulatory Commission (GERC).

GERC has given approval to 278 MW power project between the company's UnoSugen Power Plant and its licensed distribution business for cities of Ahmedabad, Gandhinagar and Surat.

The approval, with certain stipulations, is for balance life of the plant which is for 19 years.

The approval, however, has come with riders. A cap on fixed costs might lead to reduced return on equity, but might help the plant in securing its debt obligations.