Tariff dispute: Solar players vs Gujarat power

12 Feb 2021 CW Staff

The parent body for electricity development in the state, Gujarat Urja Vikas Nigam Ltd (GUVNL), had awarded the contracts to state-run SJVN Ltd, Tata Power Co, and ReNew Power to build solar capacity at tariffs as much as Rs 2.81 per kWh.

The industry has sought the Centre's intervention to resolve the matter.

The 700 MW project is part of a 1 GW solar park planned at Dholera, a low-lying wasteland surrounded by water bodies and frequently swamped by floods.

While 300 MW of projects have been awarded, the state struggled to attract bidders for the rest because of the site's geological challenges, which would require higher installation costs.

Make in Steel 2021

24 February

Click for event info

4th Indian Cement Review Conference 2021

17-18 March

Click for event info

To accommodate these challenges, GUVNL placed a higher price ceiling of Rs 2.92 per kWh on auctions conducted last year. A few months later, solar power auctions, including one conducted by Gujarat, saw a plunge in prices, guiding the state utility to consider seeking fresh bids in the electricity consumers' interest, according to an order by the state regulator, which approved the plan.

In November, the Solar Energy Corporation of India’s (SECI) auction attracted over 5,000 MW of bids, nearly five times over the 1,070 MW that went under the hammer. While the competition was a heartening trend, tariffs touched all-time lows of Rs 2.36 per kWh. The aggressive bidding that was witnessed presents a stark contrast to the early solar auction years spanning between 2015 and 2017, where a gross oversubscription of the tenders resulted in the exit of many developers from the market. This over subscription was, in large, attributed to the demand-supply mismatch.

In Gujarat, the ambitious 11,000 hectare area in Dholera identified for solar parks drew up a plan in 2019 to attract 5,000 MW of solar power installation.

Image: The tariff-driven withdrawal has prompted the industry to approach the Centre to intervene.

Also read: India’s solar tariffs at an all-time low

The Indian government has stepped in to resolve a dispute between the state of Gujarat and solar power developers over the state's plan to rescind bids for a 700 MW solar project because of high tariffs and invite fresh ones. The parent body for electricity development in the state, Gujarat Urja Vikas Nigam Ltd (GUVNL), had awarded the contracts to state-run SJVN Ltd, Tata Power Co, and ReNew Power to build solar capacity at tariffs as much as Rs 2.81 per kWh. The industry has sought the Centre's intervention to resolve the matter. The 700 MW project is part of a 1 GW solar park planned at Dholera, a low-lying wasteland surrounded by water bodies and frequently swamped by floods. While 300 MW of projects have been awarded, the state struggled to attract bidders for the rest because of the site's geological challenges, which would require higher installation costs.Make in Steel 202124 February Click for event info4th Indian Cement Review Conference 202117-18 March Click for event info To accommodate these challenges, GUVNL placed a higher price ceiling of Rs 2.92 per kWh on auctions conducted last year. A few months later, solar power auctions, including one conducted by Gujarat, saw a plunge in prices, guiding the state utility to consider seeking fresh bids in the electricity consumers' interest, according to an order by the state regulator, which approved the plan. In November, the Solar Energy Corporation of India’s (SECI) auction attracted over 5,000 MW of bids, nearly five times over the 1,070 MW that went under the hammer. While the competition was a heartening trend, tariffs touched all-time lows of Rs 2.36 per kWh. The aggressive bidding that was witnessed presents a stark contrast to the early solar auction years spanning between 2015 and 2017, where a gross oversubscription of the tenders resulted in the exit of many developers from the market. This over subscription was, in large, attributed to the demand-supply mismatch. In Gujarat, the ambitious 11,000 hectare area in Dholera identified for solar parks drew up a plan in 2019 to attract 5,000 MW of solar power installation. Image: The tariff-driven withdrawal has prompted the industry to approach the Centre to intervene.Also read: India’s solar tariffs at an all-time low

Infrastructure Urban

26 Aug 2025

Jupiter Opens First EV Showroom in Hyderabad

Jupiter Electric Mobility Pvt Ltd (JEM), the electric commercial vehicle arm of Jupiter Wagons Ltd, has inaugurated its first showroom in New Bowenpally, Secunderabad, Hyderabad. The launch also marks the introduction of its 1.05-tonne four-wheeler electric light commercial vehicle (eLCV), JEM TEZ, to Telangana’s growing logistics and intra-city freight market. This expansion underscores JEM’s commitment to delivering purpose-built sustainable mobility solutions and accelerating the electrification of India’s logistics sector.The new showroom, operated by Arven Motors Pvt Ltd, offers cus..

Infrastructure Energy

26 Aug 2025

Premier Energies Launches 620W DCR Solar Modules in India

Premier Energies Limited, one of India’s largest integrated solar manufacturers, has launched its next-generation 620W DCR solar modules using G12R TOPCon technology, now among the most powerful large-format panels available in the country.The new modules, built with Tunnel Oxide Passivated Contact (TOPCon) architecture, deliver superior power density, improved temperature coefficients, and enhanced low-light performance. The rectangular G12R N-type cell design enables higher string power and balance-of-system optimisation, making the panels suitable for utility-scale projects as well as com..

Infrastructure Energy

26 Aug 2025

ONGC Starts Gas Sales from Rajasthan Chinnewala Tibba Block

Oil and Natural Gas Corporation Limited (ONGC) has commenced natural gas sales from the Discovered Small Field (DSF-II) Block RJ/ONDSF/Chinnewala/2018, marking the successful monetisation of the Chinnewala Tibba field in the Rajasthan Kutch Onland Exploratory Asset (RKOEA). Gas sales officially began on 25 August 2025.This development highlights ONGC’s commitment to boosting domestic energy production and strengthening India’s energy security under the guidance of the Ministry of Petroleum and Natural Gas. Located in western Rajasthan, close to the Indo-Pakistan border, the Chinnewala Tibb..