Come August 2018 and India could see another big tender being launched. A Press Trust of India (PTI) report says 1 GW solar power tender capacity may be rolled out in the Dholera Special Investment Region (DSIR). The officials preparing to launch the tender in one month are expecting good response for the bids.
The government is planning to set up the largest single location ultra-mega solar park with 5 GW capacity within DSIR for an investment of 250 billion INR ($3.84 billion) (see Gujarat To Host 5 GW PV Park). The 1 GW proposed tender will be part of this park.
With the 1 GW proposed tender, the Gujarat government wants to make the most of the fall in module prices to get competitive bids. At a recent media interaction, Gujarat Principal Secretary to the Chief Minister, MK Das said, "We expect very good response as the capacity we are offering is massive, which will not only give economies of scale to the developers, but also benefit from the development happening in the Dholera region."
However, another report in the Indian Express pointed out that proximity to the sea and saline conditions in the region could push up the cost of solar power generation by 0.20 INR ($0.0029) per kWh. At the same time, developers will be required to develop appropriate infrastructure that includes laying cables, building foundations. These increased costs will be factored in, which may take up the cost of bids going up from the 2.44 INR reported in recent times. Still, the government is hoping for prices to remain under 3.00 INR ($0.044) per kWh.
A host of government agencies will work together to implement the 5 GW capacity. These include Gujarat Power Corporation (GPCL), Gujarat Urja Vikas Nigam Limited (GUVNL), Gujarat Electric Transmission Corporation (GETCO) and the Solar Energy Corporation of India (SECI).
Setting up this greenfield project is expected to generate over 20,000 jobs.
Spread across 920 km2, DSIR is being prepared to be a sustainable township that will also have industrial facilities as manufacturing units. It is located near Gujarat's industrial cities of Vadodara, Ahmedabad, Rajkot, Surat and Bhavnagar. The township is being developed in two phases.