Lowest tariff of ₹2.80 (~$0.0399)/kWh has emerged as the winner in  Gujarat Urja Vikas Nigam Limited (GUVNL)’s auction for 1,000 MW of grid-connected wind power projects.

According to a market source, “Anisha Power Projects quoted the tariff of ₹2.80 (~$0.0399)/kWh to set up 40 MW of wind power projects, Powerica Limited quoted ₹2.81 (~$0.0401)/kWh to develop 50.6 MW, Vena Energy Shivalik Wind Power also quoted a tariff of ₹2.81 (~$0.0401)/kWh to develop 100 MW of wind power projects.”

The source further informed that Sarjan Realities bid ₹2.87 (~$0.0409)/kWh to develop 100.8 MW of wind power projects, Viridi Clean Alternatives quoted ₹2.95 (~$0.0421)/kWh to set up 100 MW of wind power capacity. Inox Wind bid ₹2.95 (~$0.0421)/kWh to set up 40 MW of wind projects, ReNew Power bid ₹2.95 (~$0.0421)/kWh to develop 200 MW of wind power projects and Adani Green Energy too bid ₹2.95 (~$0.0421)/kWh to set up 300 MW of wind projects but was awarded 113.6 MW.

When contacted, a government official said, “We received bids totaling 931.40 MW and have awarded 745 MW, that is, 80% of what was bid for by the developers.”

GUVNL had issued the Request for Selection for the purchase of power through competitive bidding from this 1 GW wind project in March 2019.

The tender was undersubscribed by nearly 69 MW due to which the GUVNL had to extend the bid-submission deadline.

A top executive at one of the winners said, “All premium locations to set up these wind power projects have been asked for, and that’s the reason for such tariffs. Right now, anything below ₹3 (~$0.043)/kWh will be hard to execute and sustain in wind. Banks are not ready to lend for projects that have tariffs in the range of ₹2.75 (~$0.041)/kWh in this sector.”

The L1 tariff quoted in this auction is ₹0.37 (~$0.0052)/kWh more than the lowest-ever wind tariff of ₹2.43 (~$0.038)/kWh quoted in GUVNL’s 500 MW wind auction in Gujarat held in December 2017.

Recently, the GERC asked the bidders of wind auction to declare pre-bid tie-up with at least three equipment manufacturers or engineering, procurement, and construction contractors for the execution of the project. To this effect, a bidder for this tender should ensure prior (pre-bid) OEM/EPC tie-up with at least three manufacturers for design, engineering, supply, procurement, construction, operation, and maintenance of the projects.