Gujarat Reissues Tender for 700 MW of Solar After Scrapping the Auction Citing High Tariff

The ceiling tariff for the new tender is ₹2.70/kWh


The Gujarat Urja Vikas Nigam Limited (GUVNL) has issued a revised Request for Selection (RfS) for 700 MW of grid-connected solar photovoltaic (PV) power projects to be set up under Phase III of Raghanesda Solar Park located in the state.

Gujarat Reissues Tender for 700 MW of Solar After Scrapping the Auction Citing High Tariff

The tender was first issued in September 2018, but GUVNL later scrapped the auction citing high tariffs. This was the second time that the state canceled a completed solar auction.

In December 2018, the lowest tariff of ₹2.84 (~$0.040)/kWh was quoted in the solar auction conducted by GUVNL for 700 MW of solar power projects. There was a difference of 40 paise (~$0.005)/kWh between the lowest tariff in this auction and the lowest tariff of ₹2.44 (~$0.033)/kWh that was quoted in GUVNL’s 500 MW grid-connected solar PV auction.

Before this, in April 2018, the GUVNL had scrapped the auction to develop 500 MW of grid-connected solar PV projects in the state citing high tariffs. The capacity was retendered, and in September 2018, the auction was successfully concluded with the lowest tariff of ₹2.44 (~$0.0338)/kWh.

The bid-submission deadline for the new tender is April 30, 2019. The technical bids will open on May 1, 2019, and financial bids will take place on May 15, 2019.

The solar project will be developed under build own operate basis. The total capacity of 700 MW has been divided into seven plots each with 100 MW capacity (100 MW x 7). In the previous RfS, the total capacity was divided into three plots, two plots with 250 MW each, and the third one with 200 MW.

Each bidder will be allowed to bid for minimum 100 MW capacity and in multiples of 100 MW only.

GUVNL will enter into a power purchase agreement with the successful bidders for a period of 25 years from the scheduled commercial operation date of the project. The ceiling tariff for the tender is ₹2.70 (~$0.038)/kWh. This is ₹0.14 (~$0.0020)/kWh lower than the L1 tariff discovered in the previous auction.