GUVNL Allocates 500 MW Solar Greenshoe Capacity at ₹2.63/kWh

The auction for the initial 500 MW capacity was conducted in December 2023


The Gujarat Urja Vikas Nigam (GUVNL) has announced the allocation of the 500 MW grid-connected solar power projects in Phase XXII auction under the greenshoe option at the lowest quoted tariff of ₹2.63 (~$0.0316)/kWh.

The projects were awarded to the successful bidders who won in the initial auction, and the capacities remained the same.

SJVN Green Energy, a wholly owned subsidiary of SJVN, secured 100 MW through the greenshoe option.

According to Mercom sources, the remaining capacity under the greenshoe option was awarded to Hinduja Renewables Energy (140 MW), Avaada Energy (100 MW), and BluPine Energy (50 MW), each at L1 (lowest) tariff.

The total capacity auctioned was 390 MW, falling short of the initially tendered 500 MW.

The tender was floated in November.

SJVN, in a statement, said that the tentative cost of construction and development of the 200 MW capacity it will be developing is ₹11 billion (~$132.54 million). The ground-mounted solar project will be developed by the company anywhere in India through engineering, procurement, and construction contracts.

The power purchase agreement (PPA) with GUVNL will be executed after GERC adopts the tariff.

The projects are scheduled to be commissioned within 18 months from the date of signing the 25-year PPA.

The tender specified that projects must declare an annual capacity utilization factor (CUF) of not less than 17%. The successful bidder is obligated to maintain generation to achieve an annual CUF within +10% and -15% of the declared value for the first ten years from the commercial operation date. Subsequently, the annual CUF must remain a minimum of 15% and within +10% and -20% of the declared value until the end of the 25-year PPA duration.

Solar modules for the projects must be warranted for peak output wattage, not falling below 90% at the end of ten years and 80% at the end of 25 years from the project’s commercial operation date.

GUVNL has mandated the use of solar modules from the Ministry of New and Renewable Energy’s Approved List of Models and Manufacturers.

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