1 GW PV Tender For Dholera Soon

Indian 1 GW Solar Power Tender In Dholera Will Reportedly Launch In August 2018; Project Cost Expected To Be Higher Due To Region’s Weather Conditions, But Falling Solar Prices May Help
  • Dholera Special Investment Region (DSIR) is working to launch a 1 GW PV tender in August 2018
  • It will be part of the 5 GW solar power park announced by the State Government of Gujarat in April 2018
  • Falling costs of solar is an encouraging sign that the agencies want to make the most of and are expecting competitive bids for the 1 GW tender
  • Local media reports that tough weather conditions owing to the region's proximity to the sea may take up costs
  • For the proposed 5 GW solar power park in Dholera Special Investment Region, along with SECI, three other Gujarat government agencies are on board

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.

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