GUVNL purchases power at Rs.2.81/kWh from O2 Power's 200 MW solar projects

05 Apr 2024 CW Team

The directive stemmed from a petition lodged by the Gujarat Urja Vikas Nigam (GUVNL) regarding the bidding process that occurred on March 18, 2020, aiming to secure power from Dholera Solar Park.

TEQ Green had been allotted 200 MW out of the quoted capacity of 500 MW at Rs 2.81/kWh.

Furthermore, the Gujarat Electricity Regulatory Commission (GERC) instructed GUVNL to furnish a copy of the executed power purchase agreement to the Commission and to reveal the identities of the winning bidder and the tariff offered for a duration of 30 days on its website.

The tender for 700 MW at Dholera had been floated by GUVNL in January 2019 with a tariff ceiling of Rs 2.75/kWh. In August 2020, Vena Energy Renewables, Tata Power, ReNew Power, SJVN, and TEQ Green Power emerged victorious in the auction for Dholera Solar Park (Phase IX).

GUVNL issued letters of award to the successful bidders in October 2020.

The solar bidding guidelines do not stipulate the provision for re-tendering post the award or without nullifying the previous bidding process.

Nevertheless, in February, with approval from the Commission, GUVNL annulled the auction and reissued it to ascertain a lower tariff for the projects.

The Commission noted that the environmental conditions at the Dholera Solar Park were so arduous that, despite GUVNL's persistent efforts to solicit bids for a capacity of 1,000 MW, only bids for 300 MW were received.

The other winners in the auction were Vena Energy Renewables and Tata Power, each securing 100 MW at a tariff of Rs 2.78/kWh, Renew Solar Power with 200 MW at a tariff of Rs 2.79, and SJVN with 100 MW at a tariff of Rs 2.80. After the parties' arguments are heard, the Commission will issue rulings concerning the bids submitted by VERUPL and Tata Power.

As SJVN and Renew withdrew their appeals, GUVNL revised the tender from 700 MW to 600 MW and proceeded with the bid for 400 MW.

Infrastructure Urban

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