GUVNL Awards Solar Contracts Worth 350 MW to its Three Bidders

GUVNL has awarded contracts worth 350 MW to the three bidders that submitted bids in its latest tender for the purchase of power from 500 MW solar projects

The Gujarat Urja Vikas Nigam Limited (GUVNL) has awarded contracts worth 350 MW to the three bidders that submitted bids in its latest tender for the purchase of power from 500 MW of grid-connected solar PV power projects to be set up in Gujarat (Phase VIII).

The state utility had previously announced that it had received a total of 3 technically qualified bids worth a combined 430 MW of solar power project capacity. The three bidders were Tata Power, Juniper Green and Vena Energy – who submitted bids worth 200 MW, 190 MW, and 40 MW, respectively.

The utility has since conducted the e-reverse auction for the tender and awarded all three bidders contracts for the development of solar projects.

Vena Energy quoted the lost tariff at Rs 2.61/kWh to be awarded the 40 MW capacity it had submitted its proposal for. Juniper Energy has been awarded the full 190 MW capacity at a tariff of Rs 2.63/kWh, and Tata Power after quoting a tariff of Rs 2.64/kWh has been awarded only 120 MW capacity under the tender, after submitting a proposal for 200 MW.

GUVNL had issued the tender for the 500 MW solar power projects in February. As per the tender, the scope of work for the successful bidders will include the setting up of solar PV power project(s) including the transmission network up to the delivery point at its own cost.

The objective for issuance of the tender is to fulfill the renewable power purchase obligation (RPO) and to meet the future requirements of Discoms, GUVNL intends to procure solar power up to a capacity of 500 MW (Phase VIII). GUVNL shall enter into PPA with successful bidders for a period of 25 years from the scheduled commercial operation date of the project.

The maximum tariff payable to the selected bidder was set at Rs 2.65/ unit. And the number has been deemed, by industry stakeholders, as the key reason for the lukewarm response the tender has received.