GUVNL Issues RfS to Buy Power from 500 MW Solar Projects With Greenshoe Option of 500 MW

Gujarat Urja Vikas Nigam Limited (GUVNL) has issued a request for selection (RfS) from developers to purchase power from 500 MW of solar projects under Phase XIV with a greenshoe option of an additional capacity of up to 500 MW.

The last date to submit the bids is May 18, 2022. The bids will be opened on May 23.

GUVNL intends to procure solar power to fulfill the renewable power purchase obligation (RPPO) and meet the future requirements of distribution companies.

A bidder can submit multiple bids for a maximum cumulative capacity of 500 MW, including the capacity offered under the Greenshoe option. However, the 500 MW capacity selection under Greenshoe will be at GUVNL’s discretion.


GUVNL can enter into a power purchase agreement (PPA) with the successful bidders for 25 years from the project’s scheduled commercial operation date (COD).

Bidders must submit a tender processing fee of ₹300,000 (~$3,928) plus 18% goods and service tax (GST) and document fees of ₹25,000 (~$327) plus 18% GST, which will be non-refundable. They must also submit an earnest money deposit of ₹400,000 (~$5,237)/MW as a bank guarantee.

When signing the PPA, successful bidders will have to submit a performance bank of ₹944,000 (~$12,359)/MW, including GST.

The minimum project capacity must be 25 MW. Successful bidders will be responsible for all approvals, permits, and clearances required for setting up the project, including connectivity and land registration.

The project should be designed to deliver energy at the Gujarat Energy Transmission Corporation (GETCO) periphery. Successful bidders will be responsible for getting the grid connectivity with GETCO or the central transmission utility (CTU).

Projects under construction that do not have any PPA will also be eligible to participate in the tender.

Solar projects are allowed to be set up in the existing grid-connected wind farms subject to the availability of spare capacity for renewable energy integration at corresponding GETCO or CTU substations. Such projects must also comply with the clauses in the request for selection document and are subject to GETCO or CTU’s agreement for utilizing the connectivity granted to wind farms.

Gujarat Energy Development Agency (GEDA) will act as the state nodal agency. It will facilitate the required approvals to achieve the commissioning of the projects. It is envisaged that GETCO and CTU will help set up the transmission system to evacuate power from the project.

To be eligible, bidders must have a net worth of not less than ₹8 million (~$104,738)/ MW of the quoted capacity as of the last financial year or the year before. Bidders from countries with a land border with India will also be eligible for this tender.

Successful bidders must declare the annual capacity utilization factor (CUF) when submitting the bid, which will not be less than 17%. The CUF for the project will remain unchanged for the entire term of the PPA. The generation must be maintained to achieve annual CUF within + 10% and -15% of the declared value until ten years from the project’s commercial operation date. The annual CUF must be 15% (minimum) and within +10% and -20% of the declared value of the annual CUF until the end of the PPA duration (25 years).

Successful bidders will be liable to pay compensation at 25% of the PPA tariff to GUVNL if minimum energy corresponding to the annual CUF is not generated.

If the generation is over and above 10% of the declared annual CUF, the developer will be free to sell it to any other entity, providing the first right of refusal to GUVNL. If GUVNL purchases the excess power generated, it will be at 75% of the PPA tariff.

Early this year, GUVNL had invited bids from developers to purchase power from 500 MW of grid-connected solar power projects (Phase-XIII). Fortum Power (Alpha Energy), SJVN, Hinduja Renewables Energy, and UPC Renewables (AMSA Solar Energy) were declared winners of this auction.

According to Mercom’s India Solar Tender Tracker, GUVNL has so far floated tenders for 8.15 GW of solar projects.