The Gujarat Electricity Regulatory Commission (GERC) has adopted the tariffs discovered under the competitive bidding process conducted by Gujarat Urja Vikas Nigam (GUVNL) to procure 1,125 MW of solar power from projects to be established in the Gujarat State Electricity Corporation’s (GSECL) solar park at Khavda.

The approved tariffs are as follows: Engie Energy at ₹2.62 ($0.031)/kWh for 200 MW, NHPC, JSW Neo Energy, and SJVN Green Energy at ₹2.66 ($0.032)/kWh for 200 MW, 300 MW, and 200 MW, respectively, and NTPC Renewable Energy at ₹2.67 (~$0.032)/kWh for 225 MW.

The Commission also authorized GUVNL to sign the Power Purchase Agreements (PPAs) with the developers.

Background

GUVNL floated its Phase XXIII tender to procure 1,125 MW of solar power without energy storage from projects to be established in GSECL’s solar park at Khavda.

This procurement process saw participation from six bidders offering an aggregate capacity of 1,500 MW, surpassing the tendered capacity. SJVN Green Energy quoted for 200 MW, NHPC 200 MW, Engie Energy 200 MW, NTPC Renewable Energy 400 MW, JSW Neo Energy 300 MW, and NLC India 200 MW.

Following the recommendation of the bid evaluation committee, the financial bids of the six technically qualified bidders were opened. Engie, NHPC, JSW Neo Energy, SJVN Green Energy, NTPC Renewable Energy, and NLC India qualified. NLC India was excluded from the e-reverse auction for being the highest bidder. Consequently, the five remaining bidders, with an aggregate capacity of 1300 MW, were shortlisted for the e-reverse auction.

The tariffs discovered in the e-reverse auction were Engie Energy ₹2.62 (~$0.031)/kWh for 200 MW. NHPC, JSW Neo Energy, and SJVN Green Energy each quoted ₹2.66 (~$0.032)/kWh for 200 MW, 300 MW, and 200 MW, respectively. NTPC Renewable Energy quoted ₹2.67 (~$0.032)/kWh for 400 MW.

As per the tender provisions, bidders within 2% of the lowest tariff were declared successful. Consequently, the capacities were allocated. Engie Energy won 200 MW, NHPC 200 MW, JSW Neo Energy 300 MW, SJVN Green Energy 200 MW, and NTPC Renewable Energy 225 MW.

As per the tender document, small capacity plots of 60.24 MW and 64.76 MW were to be allotted to the last successful bidder. Thus, NTPC Renewable Energy was allocated 225 MW, including these small plots.

GUVNL issued Letters of Intent (LOIs) to the successful bidders. The PPAs were to be signed within 30 days of the LOI issuance or within ten days of the Commission’s adoption of the tariff, whichever was later.

GUVNL noted that the discovered tariffs were competitive and within market expectations when considering previously discovered tariffs of ₹2.70 (~$0.032) to ₹2.89 (~$0.035)/kWh in earlier phases.

Commission’s Analysis

The Commission scrutinized the discovered tariffs, noting differences from earlier tariffs discovered under different geographical and technical conditions. The elevation and terrain of the GSECL’s renewable energy park presented challenges not faced by other renewable energy parks in Khavda, contributing to the tariff variance.

In light of these considerations, the Commission adopted the discovered tariffs for the successful bidders. The accepted tariffs are as follows: Engie Energy at ₹2.62 ($0.031)/kWh for 200 MW, NHPC, JSW Neo Energy, and SJVN Green Energy at ₹2.66 ($0.032)/kWh for 200 MW, 300 MW, and 200 MW, respectively, and NTPC Renewable Energy at ₹2.67 (~$0.032)/kWh for 225 MW.

GUVNL was directed to execute the PPAs as per the tender’s terms.

Recently, the Commission finalized tariffs for three solar power projects in the state with a cumulative capacity of 1,200 MW and authorized GUVNL to sign the PPAs with the developers.

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