Gujarat’s 500 MW solar auction see tariffs of Rs 2.29 per unit

Gujarat Urja Vikas Nigam Limited’s (GUVNL’s) auction for 500 MW of solar projects (Phase XIII) saw successful bids from four parties at the same tariff of Rs 2.29 per unit. The winners in this auction were Fortum (through Alpha Energy) with 200 MW, SJVN with 100 MW, Hinduja Renewable Energy with 120 MW and UPC Renewables with 80 MW capacity.

GUVNL had issued a request for proposals in January 2022. It plans to purchase solar power capacity to meet its renewable power purchase obligation and future distribution company needs. Projects that are currently under construction and do not have a power purchase agreement (PPA) will be eligible to participate in the tender.

GUVNL is expected to enter into a PPA with the winning bidders for a period of 25 years, beginning on the project’s anticipated commercial operation date. The winning bidder will have to furnish an amount of Rs 944,000 per MW as a performance bank guarantee after the issuance of the letter of award and before signing the PPA. Furthermore, the project should be designed to provide energy to the Gujarat Energy Transmission Corporation’s outskirts. The winning bidder will be responsible for connecting the grid to GETCO or the central transmission utility.

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