The Gujarat Urja Vikas Nigam Limited (GUVNL) has cancelled the tender for 500 MW of wind projects. The capacity was tendered by GUVNL under Phase II of its program for procurement of wind power through competitive bidding.

In this tender, GUVNL had provided the project developers with an option to produce an extra 500 MW of wind power at the Lowest Quoted Tariff (L1) under the Greenshoe option.

When contacted, a GUVNL official confirmed the annulment of the tender to Mercom.

When asked about the reason behind the annulment, the GUVNL official said, “The bidders have certain issues with the provisions provided by us in the request for selection (RfS). We (GUVNL) will work on revision of the provisions of this Rfs. It is going to take some time, maybe two months or more. And after that, we will come out with a new tender.”

The GUVNL official refrained from disclosing the details of the changes in provisions requested by the bidders.

GUVNL had tendered the capacity to cash in on the recent low wind tariffs and to fulfill its renewable purchase obligation (RPO). Wind power tariffs had dropped to ₹2.43 (~$0.038)/kWh in the previous GUVNL wind auction.

The scope of work for the GUVNL tender included development of wind projects along with the required transmission infrastructure up to the delivery point. Shortage of transmission could also have played a role in annulment of this tender. Mercom recently reported that Solar Energy Corporation of India (SECI)’s 2 GW Tranche-V wind tender was undersubscribed by 800 MW due to shortage of connectivity infrastructure.