GUVNL floats 500-MW Solar Tender after closing 700-MW auctions at 2.84 per unit

The Gujarat Urja Vikas Nigam Limited (GUVNL) has issued Request for Selection (RfS) for the purchase of power from 500 MW grid-connected solar photovoltaic power projects to be set up in Gujarat (Phase IV).

The selection of Grid-connected Solar PV Projects for total capacity of 500 MW (Phase IV) will be carried out through e-bidding followed by e-Reverse Auction process. The minimum project capacity is 25 MW.

The last date for the bid submission is January 30, 2019.

The technical bids will open on January 31, 2019.

The date for the opening of the financial bid and reverse e-auction is February 6, 2019.

There are no Tariff caps in the tender.

The bidders will have fiscal incentives like accelerated depreciation, concessional customs and excise duties, tax holidays, benefits from trading of carbon credits, etc. Solar projects will also be allowed to be set up in the existing wind farm which is already connected to the grid.

SB Energy, Fortum Solar Plus and Electro Solaire win bids for 700 MW Gujarat solar project

SB Energy (SoftBank), Fortum Solar Plus Private Limited and Electro Solaire Private Limited (Engie) have won the bids for the implementation of the 700 MW solar park project (Phase III) in Raghanesda.

The Gujarat Urja Vikas Nigam Limited (GUVNL) had tendered for the development of 700 MW of grid-connected solar photovoltaic projects in October last year. The project is to be set up under Phase III of Raghanesda Solar Park located in the Gujarat state.

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SB Energy won the bids for developing 250 MW capacity by quoting Rs 2.84 /kWh. Meanwhile, Fortum Solar has won the bids for developing 250 MW capacity by quoting Rs 2.89/ kWh. Electro Solaire submitted the bids to develop 250 MW capacity, however, it has won the bids to develop 200 MW capacity by quoting a tariff of Rs 2.89 /kWh.

Foreign developers won the entire 700 MW being bid for at the solar auction in Gujarat but the rise of tariff by about 40 paise is a good sign, from a previous low of Rs 2.44/kWh. According to experts the rise in tariff is due to solar park charges and the competitive intensity has somewhat reduced among developers.

Earlier, seven companies had submitted bids for the development of this solar park in Raghanesda. These included- SB Energy (250 MW), Tata Power Company Limited (250 MW), Engie (250 MW), Fortum (250 MW), Mahindra (250 MW), Adani Green Energy Limited (250 MW) and Gujarat Industries Power Company Limited (250 MW).

With this, the tender issued by Gujarat Urja Vikas Nigam Limited was oversubscribed with an aggregate capacity of 1,050 MW. The latest bid brings a much-needed boost after the last year’s dismal performance Solar developers forcing many tenders to close or scrapped. GUVNL too had earlier extended the Request for Selection (RfS) bid due date for 700 MW grid-connected solar photovoltaic (PV) projects November 15, 2018 to November 29, 2018. The tender closed on 21st December.