The Gujarat Urja Vikas Nigam Limited (GUVNL) has issued a request for selection (RfS) for the purchase of power from 500 MW of grid-connected solar projects (Phase VIII).

The maximum tariff payable to the selected bidder has been set at ₹2.65 (~$0.037)/kWh. The power purchase agreement (PPA) will be for 25 years. Interested bidders are expected to pay an earnest money deposit (EMD) of ₹400,000 (~$5,585). A ₹300,000 (~$4,189) non-refundable processing fee must also be submitted along with the response to the RfS.

The last date for the submission of bids is March 7, 2020.

The successful bidder is expected to set up the solar project including the transmission network up to the delivery point. The projects would be technology agnostic within the existing photovoltaic technology, the tender further specified.

To be eligible to take part in the competitive bidding process, the net worth of the bidder as of the end of the previous financial or calendar year should not be less than ₹10.7 million (~$149,410) per MW of the capacity quoted. The minimum project capacity to be undertaken by bidders was set at 25 MW.

The tender has been issued to procure solar against the distribution companies’ renewable purchase obligation (RPO).

Those projects that are under construction and projects already commissioned but do not have any long-term PPA with any agency and selling power on short-term or merchant plant basis will be considered, in case these projects are not already accepted under any other central or state programs and do not have any obligations towards existing buyers.

Solar projects will also be allowed to be set up in the existing wind farm which is already connected to the grid subject to availability of spare capacity for renewable integration at the Gujarat Energy Transmission Corporation Limited (GETCO) or Central Transmission Utility (CTU) substation and subject to compliance.

According to Mercom’s India Solar Project Tracker, GUVNL had auctioned ~2.4 GW of solar projects under (Phase I to Phase VII). Out of this, Phase I – 500 MW is operational.

Last year as well, the state had issued a 500 MW solar tender which was oversubscribed by 545 MW. Later, Paryapt Solar, a special purpose vehicle by UPC Solar, emerged as the lowest bidder by quoting a tariff of ₹2.55 (~$0.035)/kWh for developing the project.

However, in the past, GUVNL canceled an auction for 500 MW of solar projects in the state citing high tariff where Kalthia Engineering and Construction had emerged as the lowest bidder by quoting a tariff of ₹2.98 (~$0.046)/kWh to develop 50 MW of solar PV projects.

Meanwhile, the state recently approved a tariff of ₹2.65 (~$0.038)/kWh for a 100 MW solar project under phase VI of the state’s Raghanesda Solar Park.

Gujarat has so far installed approximately 2.35 GW of large-scale solar installations while 1.94 GW of projects is currently in the pipeline, according to Mercom India Project tracker.