Powerica Secures 25-Year Power Purchase Agreement for 100 MW Wind Project in Gujarat

Powerica has entered into a 25-year power purchase agreement (PPA) to supply electricity from its proposed 100 MW wind energy project in Gujarat. Under the agreement, the company will sell power to Gujarat Urja Vikas Nigam Limited (GUVNL), the state-owned power distribution utility, at a fixed tariff of ₹3.435 per unit over the full 25-year contract term.

The agreement marks a significant step in strengthening Powerica's renewable energy portfolio. Gujarat has emerged as one of India's leading states for wind energy development, benefiting from favorable wind resource conditions along its western coastline and supportive state-level policies aimed at expanding clean energy capacity. The state ranks among India's top wind-power producers alongside Tamil Nadu and Karnataka.

GUVNL, headquartered in Vadodara, serves as the apex company for the Gujarat Power Sector and is responsible for bulk power procurement and distribution across the state. The utility regularly issues competitive bids for renewable energy procurement as part of India's broader push toward achieving its target of 500 GW of non-fossil fuel installed capacity by 2030. Wind energy accounts for roughly 45 GW of India's current installed power base, making it the second-largest renewable source after solar, and long-duration PPAs of this type are central to sustaining capacity growth in the sector.

The ₹3.435 per unit tariff locked in by Powerica reflects the increasingly competitive pricing environment in India's wind power sector, where tariffs have declined substantially over the past decade due to advances in turbine technology, economies of scale, and the transition from feed-in tariffs to auction-based procurement.

Source: CNBC-TV18