Gujarat’s 700 MW Solar Auction Sees Lowest Tariff of ₹2.84/kWh
SB Energy quoted the lowest tariff
Lowest tariff of ₹2.84 (~$0.0406)/kWh was quoted in the solar auction conducted by the Gujarat Urja Vikas Nigam Limited (GUVNL) for 700 MW of solar power projects.
The projects are slated to be set up under Phase III of Raghanesda Solar Park located in the state.
SB Energy quoted the lowest (L1) tariff of ₹2.84 (~$0.0406)/kWh to develop 250 MW, Fortum quoted ₹2.89 (~$0.0413)/kWh to develop 250 MW and Electro Solaire (Engie) had quoted the same tariff to develop 250 MW but will be awarded 200 MW due to bucket filling method applied to award capacities in reverse auctions.
The capacity was tendered in October 2018 and bids aggregating 1,750 MW were submitted by interested parties. The capacity has been tendered to fulfill the renewable purchase obligation (RPO) and to meet the future requirements of the state distribution companies (DISCOMs).
Manoj Gupta of Fortum confirmed the culmination of the auction. Discussing the reasons behind the tariff quoted, he said, “The solar park cost in Raghanesda is more than any other solar park in India, we have included GST, safeguard duty as they cannot be covered under force majeure conditions anymore, the project site is sandy and has clay which means balance of system (BoS) costs will go up by nearly 15 percent and on top of all these, the generation numbers will be low in the area where the project will be developed compared to anywhere else in Gujarat.”
When asked if the GUVNL will award these capacities as there is a 40 paise (~$0.005)/kWh difference between L1 tariff in this auction and the L1 tariff of ₹2.44 (~$0.0338)/kWh quoted in GUVNL’s 500 MW grid-connected solar PV auction, Gupta said, “Yes, they should award these capacities as the returns for the government will be same if you look at the charges in the solar park.”
The L1 tariff quoted in this auction is 18 paise (~$0.002)/kWh less than the L1 tariff of ₹3.02 (~$0.0431)/kWh quoted in Uttar Pradesh New and Renewable Energy Development Agency (UPNEDA)’s 550 MW grid-connected solar PV auction.
GUVNL could not be reached for comments.
Saumy is a senior staff reporter with MercomIndia.com covering business and energy news since 2016. Prior to Mercom, Saumy was a copy editor at Thomson Reuters. Saumy earned his Bachelors Degree in Journalism & Mass Communication from the Manipal Institute of Communication at Manipal University. More articles from Saumy Prateek.