GUVNL's 500 MW Solar Auction Gets Lowest Tariff of ₹2.20_kWh

Sprng Ujjvala Energy, NTPC Renewable Energy, Coal India, and TP Saurya-a Tata Power subsidiary – were declared winners in the Gujarat Urja Vikas Nigam Limited’s (GUVNL) auction to purchase power from 500 MW of grid-connected solar projects (Phase XII).

Sprng Ujjvala Energy won a capacity of 120 MW quoting ₹2.20 (~$0.030)/kWh. Meanwhile, NTPC Renewable Energy, Coal India, and TP Saurya won 150 MW, 100 MW, and 60 MW, respectively, quoting ₹2.20 (~$0.030)/kWh. SJVN had quoted 100 MW at ₹2.21 (~$0.030)/kWh and won 70 MW capacity under the bucket filling method.

This is the first auction after the announcement of basic customs duty (BCD) on solar cells (25%) and modules (40%) which is applicable from April 2022. Bidders were cautioned to take the BCD into account while quoting tariffs in all future bids where the last date of bid submission fell after the notification dated March 9, 2021.

The lowest quoted tariff was up 11% compared to GUVNL’s previous auction for 500 MW of solar projects, which set a new record for the lowest tariff with ₹1.99 (~$0.0270)/kWh in the auction.


GUVNL 500 MW Phase XII Solar Tender - Auction Results

The tender had received a good response and was oversubscribed. The bidders’ list included Ayana Renewable Power, ReNew Power, Aljomaih Energy & Water Company, NTPC, Coal India, Tata Power, Torrent Power, Juniper Green Energy, Sprng Energy, Vector Green, and SJVN.

Earlier this year, GUVNL had floated a tender to purchase power from 500 MW of grid-connected solar PV projects to be set up in the state under Phase XII. Successful bidders are expected to set up the solar PV power projects, including the transmission network up to the delivery point. They must secure all necessary permits and clearances required for setting up the project, including connectivity and land registration.

The project must be designed for power delivery at the Gujarat Energy Transmission Company Limited (GETCO). The Gujarat Energy Development Agency will be the nodal agency for implementing the project. The project must be interconnected with the state and central transmission utility substations directly through a dedicated line or a pooling substation of an existing wind farm.

In December last year, GUVNL’s (Phase XI) auction for 500 MW of solar projects set a new record. The lowest (L1) tariff reached ₹1.99 (~$0.0270)/kWh in the auction. The tariff was a paisa less than Solar Energy Corporation of India’s (SECI) previous record low tariff of ₹2 ($0.027)/kWh discovered in its auction for 1,070 MW GW of grid-connected solar projects (Tranche III) in Rajasthan.

Following this, GUVNL decided to cancel its earlier auction for 700 MW of solar projects with tariffs ranging from ₹2.78 (~$0.0380)/kWh to ₹2.81 (~$0.384)/kWh and retender it (Phase IX), hoping to discover a lower tariff. The projects were to come up at the state’s Dholera Solar Park. The developers filed a petition with the Appellate Tribunal for Electricity (APTEL), seeking relief.

APTEL, in its ruling, directed GUVNL to extend the validity of bids placed by developers in its scrapped 700 MW solar auction by two weeks. Despite this fact, the tender received an enthusiastic response from the bidders.

Mercom’s premium event Mercom India Solar Summit, to be held virtually on April 8th and 9th, has an exclusive session to discuss ‘Tenders and Auctions-From Pipeline to PPAs, How We Get There.’ You can click here to register for the event.