GUVNL’s 500 MW solar auction sets record low tariff of Rs 1.99 per kWh

The Gujarat Urja Vikas Nigam Limited’s auction for 500 MW (Phase XI) of solar capacity has set a record with the lowest tariff being quoted at Rs 1.99 per kWh. The figure was quoted by NTPC Limited and it represents the lowest tariff for solar projects in the country. Of the tendered capacity, 200 MW was allotted to NTPC Limited, 100 MW was allotted to Torrent Power Limited, 80 MW to Al Jomaih Energy and Water Company Limited, and the remaining 120 MW to Aditya Renewables under the bucket filling method. The winning bidders are expected to set up solar power projects and transmission networks up to the delivery point. They must also bear all expenses, acquire approvals, permits, and clearances for project development. Further, the project must also make use of crystalline silicon, or thin-film, among others, with or without trackers for the installation of solar capacity.

In September 2020, GUVNL had invited bids under the tender for the purchase of 500 MW of power from grid-connected solar projects. As per the tender document, projects under construction, yet to be commissioned, or projects that are already commissioned but do not have any long-term PPA with any agency were eligible. The tariff recorded in the latest GUVNL solar auction tariff is a paisa less than the previous record low tariff of  Rs2 per kWh which was quoted in its auction for SECI’s 1,070 MW of grid-connected solar projects (Tranche III) in Rajasthan last month.

As of September 2020, Gujarat has about 2.4 GW of installed solar capacity and about 3 GW in the project pipeline.  The recently concluded auction of a 700 MW solar tender for the Dholera solar park (Phase IX) by GUVNL recorded the lowest tariff Rs 2.78 per kWh which was quoted by Tata Power and Vena Energy.