GUVNL cancels its 500 MW solar auction

Gujarat Urja Vikas Nigam Limited (GUVNL) has cancelled its recent solar power auction for the development of 500 MW of capacity in the state. The capacity had been tendered in February 2018 by GUVNL to fulfil its RPO. However, the lowest tariff of Rs 2.98 per kWh, quoted by Kalthia Engineering and Construction to develop 50 MW of capacity, was considered much higher than that discovered in GUVNL’s earlier solar auction of the same capacity. The individual project capacities were not awarded and tariffs were under review by GUVNL’s board of directors. The performance bank guarantees submitted by the bidders have also been returned by GUVNL.