Markets

INR 2.20/kWh L1 Bid For GUVNL’s 500 MW Solar Auction

GUVNL’s last 2 solar tenders for 500 MW capacity has attracted some of the lowest winning tariffs in the country, with INR 1.99 per kWh discovered for phase XI as the historic low tariff ever for solar PV. Now, under phase XII it has secured INR 2.20 per kWh as lowest bid.

Anu Bhambhani

Published:23rd Mar, 2021 at 3:58 AM

The solar power tender for 500 MW capacity under phase XII launched by Gujarat Urja Vikas Nigam Limited (GUVNL) in January 2021 has attracted the lowest winning bid of INR 2.20 ($0.030) per kWh, according to Mercom India Research.

Quoting this tariff were the following companies:

Sprng Ujjvala Energy, winning 120 MW,
NTPC Renewable Energy, winning 150 MW,
Coal India, winning 100 MW,
TP Saurya, winning 60 MW.

Only SJVN Limited quoted a slightly higher tariff of INR 2.21 ($0.030) per kWh to stake claim to 70 MW under the 'bucket filling' method.

In the previous auction for phase XI for 500 MW grid connected capacity concluded by GUVNL in December 2020, the lowest winning bid of INR 1.99 per kWh made history as the lowest winning bid for any solar auction in India (see Historic Low For Indian Solar Tariffs @INR 1.99/kWh). The INR 2.20 per kWh is an increase of 11% from INR 1.99 per kWh.

There's another reason why this auction has assumed importance, pointed out Mercom. It is the 1^st auction after the country announced a basic customs duty (BCD) that's set to come into effect from April 1, 2022 and will not grandfather already bid out projects (see India Imposes Basic Customs Duty On Cells & Modules). Bidders were cautioned to take into account BCD.