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Only one company participated in the 100 MW solar auction held by Gujarat recently.
Hydroelectric power generation company SJVNsubmitted a bid for the entire capacity, according to sources close to the development. The tariff quoted by SJVN was Rs. 2.73 per unit.
Although GUVNL (Gujarat Urja Vikas Nigam Limited) did not confirm the details of the auction, an executive at the discom (distribution company) confirmed that since there was only one bidder, it did not hold a reverse auction. "The tariff will be approved by the state electricity regulatory commission," the executive said, requesting anonymity.
"Interest has been low because of site related issues on one hand and low tariff expectations of Gujarat discoms," said Vinay Rustagi, managing director of renewable energy consultancy firm, Bridge To India.
SJVN will be commissioning its project at Raghanesda solar park.
GUVNL has cancelled several tenders in the past when tariffs realised were above their expectations, he noted. "With this mix of site conditions and solar park charges, a tariff of around Rs. 2.75 is difficult to deliver," Rustagi said.
In a solar auction conducted by GUVNL in August, the lowest tariff emerged at Rs. 2.78 per unit. Winners of the auction have to set up their projects at Dholera solar park which has its own challenges. "It is an inter coastal region where theres water logging. So the civil cost is higher for construction in the area," the executive told ET in August. |
