Gujarat Issues Tender for 1 GW of Wind Projects

The Gujarat Urja Vikas Nigam Limited (GUVNL) has issued Request for Selection (RfS) for the purchase of power through competitive bidding process from 1,000 MW of grid-connected wind power projects to be developed in the state (Phase II-R).

The last date for the submission of bids is March 30, 2019. The techno-commercial bid will open on April 1, 2019. Financial bid and reverse auction will take place on April 8, 2019. GUVNL will enter into a power purchase agreement (PPA) with successful bidders for a period of 25 years.

The bidders will be able to avail the fiscal incentives like accelerated depreciation, concessional customs and excise duties, tax holidays, benefits from trading of carbon credits, among others.

The minimum bid capacity is 25 MW while the maximum is set at 300 MW.

GUVNL may consider signing PPAs of up to 100 MW capacity with public sector units or government-controlled organizations who participated in the tender but did not become successful bidders and are willing to execute the PPA at the lowest tariff discovered in the auction. However, the criterion for a minimum capacity of 25 MW will not apply to them.

Recently, the GERC asked the bidders of wind auction to declare pre-bid tie-up with at least three equipment manufacturers or engineering, procurement, and construction (EPC) contractors for the execution of the project. To this effect, a bidder for this tender should ensure prior (pre-bid) OEM/EPC tie-up with at least three manufacturers for design, engineering, supply, procurement, construction, operation, and maintenance.

The net worth of the bidder should not be less than ₹12.4 million (~$0.18 million)/MW of the offered capacity in the last financial year.

In January 2019, the state government of Gujarat modified its land laws relating to the development of wind and hybrid (wind and solar) parks in the state. The land is already earmarked for wind and wind+solar hybrid projects auctioned by Gujarat state agencies as well as central agencies.

Gujarat has so far installed approximately 1.5 GW of large-scale solar installations as of Q4 2018, according to Mercom India Project tracker.

Nitin is a staff reporter at Mercomindia.com and writes on renewable energy and related sectors. Prior to Mercom, Nitin has worked for CNN IBN, India News, Agricultural Spectrum and Bureaucracy Today. He received his bachelor’s degree in Journalism & Communication from Manipal Institute of Communication at Manipal University and Master’s degree in International Relations from Jindal School of International Affairs. More articles from Nitin Kabeer