Gujarat Power Demand Remains Robust as GSECL Targets Growth Through Thermal Expansion, Renewables and Building Large Scale Future Energy Infrastructure in FY25

Gujarat Power Demand Remains Robust as GSECL Targets Growth Through Thermal Expansion, Renewables and Building Large Scale Future Energy Infrastructure in FY25

The Electrical Post

Gujarat's power sector continued to demonstrate strong growth and resilience during FY2024-25, supported by rising electricity demand, expanding renewable energy capacity and a stable power generation ecosystem. According to Gujarat State Electricity Corporation Limited (GSECL), the state remains focused on balancing energy security with its transition toward a low-carbon future through investments in both conventional and renewable power infrastructure.

The renewable energy segment emerged as a key growth driver in Gujarat's power market. GSECL highlighted the development of a 3,325 MW Renewable Energy Park, strengthening the state's leadership in large-scale renewable energy deployment. The corporation also commissioned Gujarat's first large-scale grid-connected Battery Energy Storage System (BESS) project of 57 MWh alongside a 35 MW solar photovoltaic project, marking a significant step toward grid stability and renewable integration.

On the conventional power side, thermal generation continues to play a critical role in ensuring reliable electricity supply as renewable penetration increases. Regulatory observations during FY2024-25 emphasized that thermal power remains essential for mitigating the variability of renewable energy generation and maintaining secure grid operations. Gujarat's distribution utilities have simultaneously increased the share of renewable energy in their procurement mix to meet Renewable Purchase Obligation (RPO) targets and optimize power purchase costs.

Financially, GSECL delivered a strong performance in FY2024-25. Managing Director Shri Somes Bandyopadhyay stated that the corporation's Profit Before Tax (PBT) was projected to exceed Rs. 600 crore during FY2024-25, supported by operational efficiencies and disciplined cost management. The company achieved substantial savings through reductions in excess oil costs and fixed-cost under-recovery, strengthening its financial position. GSECL also declared a dividend to the Government of Gujarat for the first time in its history, reflecting improved financial stability.

Operational performance remained robust during the year. GSECL recorded the highest power generation in the last decade, generating 25,752 million units (MUs) of electricity. Renewable energy operations also expanded significantly, with installed renewable capacity reaching 573 MW and renewable generation increasing by 46.48% over the previous year to 917.15 MUs. The corporation's emphasis on efficiency, reliability and sustainability was further recognized through national awards for water-efficient power generation facilities.

Looking ahead, GSECL's Managing Director expressed confidence in Gujarat's energy future. In line with its vision of Building Large Scale Future Energy Infrastructure, the corporation plans to strengthen the state's energy security while accelerating its transition toward cleaner energy sources. A major focus area will be the proposed 800 MW supercritical Unit 7 at Ukai Thermal Power Station, which is expected to add critical baseload capacity to support the growing share of renewable energy in the grid. GSECL is also enhancing grid infrastructure through advanced storage solutions and digital technologies to ensure that increasing renewable energy adoption does not compromise reliability, affordability or system stability.

According to the management, the coming years will define the next phase of Gujarat's energy landscape, with GSECL aiming to deliver reliable, efficient and sustainable power while supporting the state's economic growth and environmental commitments. The company intends to pursue a balanced strategy of leveraging technology, optimizing existing assets and expanding renewable energy capacity to meet the evolving needs of Gujarat's power sector.
 

Published at : Sep 03, 2026 11:49 AM (IST)

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