The Gujarat Electricity Regulatory Commission (GERC) has, in a recent order, adopted the tariff of ₹2.81 ($0.033)/kWh quoted by TEQ Green Power, a subsidiary of O2 Power, developing a 200 MW solar project at the Dholera Solar Park.

The order was in response to a petition filed by the Gujarat Urja Vikas Nigam Limited (GUVNL) concerning the bidding process conducted on March 18, 2020, to procure power from Dholera Solar Park.

Of the quoted capacity of 500 MW, TEQ Green was allocated 200 MW at ₹2.81 ($0.033)/kWh.

The GERC also directed GUVNL to submit a copy of the executed power purchase agreement to the Commission and disclose the names of the successful bidder and the tariff quoted for 30 days on its website.

Background

The 700 MW tender at Dholera was floated by GUVNL in January 2019 with a tariff ceiling of ₹2.75 ($0.037)/kWh. In August 2020, Vena Energy Renewables, Tata Power, ReNew Power, SJVN, and TEQ Green Power won the auction for Dholera Solar Park (Phase IX).

GUVNL issued letters of award to the successful bidders in October 2020.

The solar bidding guidelines do not provide for retendering after the award or without canceling the earlier bid process.

However, in February, with the go-ahead from the Commission, GUVNL canceled the auction and retendered it to discover a lower tariff for the projects.

Commission’s analysis

The Commission observed that the site conditions in the Dholera Solar Park are so challenging that, despite GUVNL’s consistent attempts to invite bids for 1,000 MW capacity, GUVNL managed to get bids only for 300 MW.

The other winners in the auction were Vena Energy Renewables and Tata Power for 100 MW each at a tariff of ₹2.78 ($0.0336)/kWh, Renew Solar Power’s 200 MW at a tariff of ₹2.79 ($0.0333), and SJVN’s 100 MW at a tariff of ₹2.80 ($0.0335). After hearing the parties, the Commission will pass orders concerning the bids submitted by VERUPL and Tata Power.

As SJVN and Renew withdrew their appeals, GUVNL amended the tender from 700 MW to 600 MW and proceeded with the bid for 400 MW.

The Commission accepted that the tariff of ₹2.81 ($0.0337)/kWh by TEQ Green was competitive. It adopted the tariff, allowing the signing of PPA with TEQ Green.

Last month, GERC adopted a tariff of ₹3.11/kWh (~$0.037) for GUVNL to procure power from 500 MW grid-connected wind power projects in the state.

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The Commission will pass the necessary order in respect to the bid submitted by VERUPL and Tata Power after hearing the concerned parties.