SJVN Wins GUVNL’s 100 MW Solar Auction Again at Rs 2.64/kWh

SJVN has once again emerged as the winner in the auctions conducted by GUVNL for 100 MW solar projects in the Raghanesda Solar Park.

SJVN Limited has announced that it has once again emerged as the winner in the auctions conducted by the Gujarat Urja Vikas Nigam Ltd (GUVNL) for 100 MW solar projects to be developed in the Raghanesda Solar Park. SJVN won the project capacity at a tariff of Rs 2.64/kWh.

In September 2020, SJVN had emerged victorious in the auctions conducted for the same project at a higher tariff of Rs 2.73 per unit. 

However, GUVNL in February this year had cancelled the results of auctions held for the award of 700 MW Dholera solar park and the 100 MW project at Raghanesda solar park in the state which SJVN had won. The Discom had received permission from the state power regulator Gujarat Electricity Regulatory Commission (GERC) to hold the auctions again. 

In the auction conducted for the 700 MW projects in August 2020, GUVNL had awarded the capacity to five bidders. With Tata Power and Vena Energy submitting the winning bids (Lowest Bids – L1) for 100 MW capacity each of Rs 2.78/kWh. Followed by ReNew Power which secured 200 MW project capacity with its bid of Rs 2.79/kWh. SJVN Limited was also involved in the tender process and came in with the L3 bid of Rs 2.80/kWh and secured 100 MW capacity while TEQ Power secured the remaining 200 MW capacity with its bid of Rs 2.81/kWh.

In March, GUVNL had reissued the tenders to purchase 800 MW of solar power from the solar projects at the Dholera and Raghanesda Solar Parks in the state.

While the 700 MW tender remains in challenged by the winning bidders at the Appellate Tribunal for Electricity (APTEL), the 100 MW solar auction has been successfully completed with SJVN again emerging victorious.

In December 2020, the state had set a new benchmark when the latest round of auctions conducted by GUVNL, for 500 MW worth of solar projects in the state, set a new record for the lowest solar tariff in India. With L1 tariffs reaching Rs 1.99/kWh, the auction beat the recently set record of Rs 2/kWh which was set in November. 

Citing the difference in the new record low tariffs, and the tariffs obtained in the other auctions. The state regulator stated in its order for re-tendering the 100 MW capacity in the Raghanesda Solar Park that “in light of the latest price trends, wherein discovered tariff is at Rs 1.99 per unit in (the) non-park based tender … the financial implication of higher tariff of Rs 2.65 per unit offered for 100 MW capacity for a period of 25 years would be substantial.”