The Gujarat Electricity Regulatory Commission (GERC) has approved the tariffs discovered in the competitive bidding process conducted by the Gujarat Urja Vikas Nigam (GUVNL) to procure 500 MW of power from grid-connected wind power projects (Phase III) with a greenshoe option for an additional 500 MW.

The lowest tariff of ₹2.84 (~$0.034)/kWh was quoted by the Gujarat State Electricity Corporation (GSECL).

The Commission directed the state distribution company (DISCOM) to sign power purchase agreements (PPAs) with the successful bidders at tariffs discovered in the bidding process.

The state regulator asked GUVNL to publicize the names of the successful bidders and the tariffs they quoted for 30 days on its website.

Background

GUVNL floated a tender to procure 500 MW of wind power with an additional allocation of up to 500 MW capacity under the greenshoe option on May 9, 2022.

Subsequently, in the e-reverse auction, seven bidders were declared successful.

GUVNL, having found a significant gap between the lowest and highest quoted tariffs discovered in the reverse auction, sought consent from the bidders to match their quoted tariff with the L1 tariff of GSECL for their offered capacity and equivalent additional capacity under the greenshoe option.

Solarcraft Power India 3 revised the tariff to ₹2.96 (~`$0.036)/kWh for 100 MW capacity against their quoted tariff of ₹3.05 (~$0.037)/kWh and said it was ready to undertake 100 MW under the greenshoe option.

Accordingly, Solarcraft proposed an average tariff of ₹2.90 (~$0.035)/kWh for their total 200 MW capacity.

Also, Juniper Green Energy agreed to a total 70 MW capacity at an average tariff of ₹2.90 (~$0.035)/kWh.

Similarly, Rajpur Renewables and TEQ Green Power XII conveyed their consent for their base capacity of 30 MW and 70 MW, respectively, at the tariff of ₹2.90 (~$0.035)/kWh.

Project Twelve Renewable Power conveyed its difficulty in finalizing locations and assessment of the potential for the projects. However, Project Twelve Renewable Power and ACME Pokhran Solar submitted their revised tariff of ₹2.90 (~$0.035)/kWh for their base capacity of 140 MW and 50 MW, respectively.

Commission’s analysis

The discovered tariff of successful bidders with the quoted capacity and allocated capacity is given below:

The state regulator observed that the DISCOM had approached the Commission on November 9, 2022, for the adoption of tariffs.

Also, the petitioner’s PPAs were yet to be signed with the successful bidders, although it had filed the draft PPA.

Accordingly, GERC directed GUVNL to execute the PPAs with the successful bidders and asked it to submit a copy of the signed PPAs.

Last October, GERC had approved the tariff of ₹1.75 (~$0.023)/kWh for the purchase of surplus power by DISCOMs from wind power projects built for captive use and third-party sale.

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