The Gujarat Electricity Regulatory Commission (GERC) has approved the power purchase agreements (PPAs) for 500 MW of grid-connected solar photovoltaic (PV) projects which were tendered and auctioned by the Gujarat Urja Vikas Nigam Limited (GUVNL). The solar PV projects will be developed under Phase III of the state’s Raghanesda Solar Park.
In May 2019, the state had auctioned 500 MW of grid-connected solar PV projects out of the tendered 700 MW solar PV capacity. In the auction, Engie had emerged as the lowest bidder after quoting a tariff of ₹2.65 (~$0.038)/kWh to develop a capacity of 200 MW.
Gujarat Industries Power Company Limited (GIPCL) bid ₹2.68 (~$0.0384)/kWh to set up 100 MW of solar capacity while Gujarat State Electricity Corporation Limited (GSECL) bid ₹2.68 (~$0.0384)/kWh to set up 100 MW of solar capacity. Tata Power bid ₹2.70 (~$0.0387)/kWh to develop 200 MW but has been awarded 100 MW. It is important to note here that this tender was undersubscribed by 100 MW and bids totaling 600 MW had been submitted against the tendered capacity of 700 MW.
GUVNL had retendered this capacity in March 2019 after it was first issued on September 2018 and the resulting auction had been canceled citing high tariffs. The ceiling tariff for this tender was set at ₹2.70 (~$0.0387)/kWh.
After the completion of this auction, the GUVNL had requested the state commission to approve the tariffs and the PPAs.
The Gujarat commission has directed the GUVNL to execute the PPAs with the successful bidders for a total capacity of 500 MW solar PV within 15 days from receipt of this order and to submit a copy of the executed PPAs to the commission. The GERC has also directed the GUVNL to host the PPAs on its website for 30 days for the knowledge of its stakeholders.
Image Attribution: Antalexion [CC BY-SA 4.0 ]
Saumy is a senior staff reporter with MercomIndia.com covering business and energy news since 2016. Prior to Mercom, Saumy was a copy editor at Thomson Reuters. Saumy earned his Bachelors Degree in Journalism & Mass Communication from the Manipal Institute of Communication at Manipal University. More articles from Saumy Prateek.