The 1000 MW solar auction, including 500 MW green-shoe option, concluded at Rs 2.30-2.31 tariff
Ahmedabad, June 10 The Aditya Birla Group’s arm, ABREL SPV 2 Ltd, and Hinduja Renewables Energy Pvt Ltd, have emerged as the lowest bidders for Gujarat Urja Vikas Nigam Ltd (GUVNL)’s 500 MW solar power auctions, which concluded on June 10.
ABREL SPV 2 and Hinduja Renewables Energy won 300 MW, and 120 MW respectively, with both quoting a tariff of Rs 2.30 per unit. SJVN Ltd was awarded 80 MW of the quoted capacity of 200 MW, with its quoted tariff at Rs 2.31. The reserve price was set at Rs 2.41 per unit.
The auction to develop 500 MW of solar projects under Phase XIV has a greenshoe option of an additional capacity of up to 500 MW (Tranche-XIV). The tender for the auctions was issued in April 2022.
On Friday, GUVNL concluded a solar tender (Tranche XIV) for 1000 MW capacity (500 MW + 500 MW green-shoe option) with tariff discovery of Rs 2.30–2.31 / unit. Bids were invited through request for selection (RfS) dated April 16, 2022 for purchase of power through a competitive bidding process from 500 MW of grid-connected solar projects, with a greenshoe option for an additional capacity of 500 MW, an official statement from GUVNL said.
The successful bidders will be offered additional capacity to the extent of their respective quoted capacity or higher quantum (in case any of the successful bidders does not accept the additional quantum offered under the greenshoe option) to the extent of greenshoe capacity. The successful bidders will have to get the required approvals, permits, clearances and land registrations. The power purchase agreement (PPA) with the successful bidders will be for 25 years from the start of commercial operations.
GUVNL, through various rounds of Competitive Bidding Process, has tied up a total of 5050 MW of renewable projects that include 700 MW of wind and 4350 MW of solar to meet renewable power purchase obligations (RPOs) and to meet the requirements of its four distribution companies in the State. The tariffs range between Rs 1.99–2.80/ unit, it said.
In the earlier tender for 500 MW of solar capacity issued on March 16, 2022, GUVNL had fetched a tariff of Rs 2.29/ unit.
“The high credit rating of the Gujarat DISCOMs, a positive administration; track-record of GUVNL of honouring contracts; managing timely payment obligations and a general sense of policy stability in the State seems to have been the main reasons for such attractive tariffs,” a statement said.