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The Gujarat Urja Vikas Nigam Limited (GUVNL) initiated a process for procuring power from 500 MW of grid-connected solar projects through a competitive bidding mechanism. The invitation for bids was released on March 15, 2024, with the option for bidders to provide additional capacity through a Greenshoe option, allowing up to 500 MW more without energy storage.
Seven companies, including Avaada Energy, KPI Green Energy, and Hinduja Renewables, submitted bids totaling 970 MW. Following an evaluation of the technical and financial aspects, the e-reverse auction resulted in a competitive tariff discovery, with the lowest tariff at ?2.67 per unit. KPI Green Energy emerged as the lowest bidder, offering 120 MW at this rate.
After the auction, GUVNL conducted negotiations with the successful bidders to secure even lower tariffs. KPI Green Energy agreed to reduce its tariff to ?2.65 per unit for its allocated capacity. Avaada Energy maintained its original bid of ?2.68 per unit, while Solarcraft Power reduced its tariff to ?2.66 per unit. Hinduja Renewables, bidding for 300 MW, was allocated 130 MW and offered a revised tariff of ?2.69 per unit.
GUVNL awarded a total of 500 MW of solar capacity to these companies, ensuring competitive rates. In addition to the base capacity, several companies, including KPI Green Energy and Avaada Energy, agreed to supply additional capacity under the Greenshoe option at the lowest discovered rate of ?2.65 per unit. This led to an overall capacity of 1,000 MW being tied up through the auction process.
The project is expected to contribute significantly to Gujarat’s renewable energy goals, particularly as the state aims to meet its Renewable Purchase Obligations (RPO) targets. The discovered tariffs are lower compared to thermal power rates, providing long-term price stability in the state’s power procurement strategy.
The successful conclusion of the auction underscores the competitiveness of the renewable energy sector in India and the continued efforts of GUVNL to secure cost-effective, clean energy for the state. These projects are also expected to help meet the government’s broader goal of increasing solar energy use as part of its energy mix, as stipulated in national renewable energy targets. |
