GUVNL’s 1.5 GW Solar Tender Under Phase XVI

• GUVNL has launched a solar power tender under phase XVI to procure power from 750 MW capacity
• It will also offer to offtake another 750 MW grid connected solar under greenshoe option
• Minimum project capacity will be 25 MW, and projects need to be located within Gujarat

The Gujarat Urja Vikas Nigam Ltd (GUVNL) is soliciting bids to procure power from 750 MW grid connected solar PV capacity under phase XVI with another 750 MW available under greenshoe option, to fulfil its renewable power purchase obligation (RPPO) and meet future electricity requirements.

The additional 750 MW under greenshoe option will be offered to successful bidders if they can enter a PPA at the lowest tariff discovered in the auction.

All projects need to be set up within the state of Gujarat with minimum capacity sought for an individual project being 25 MW. Projects currently under construction and no having any PPA with existing buyers can also participate in the exercise.

Solar projects will also be allowed to settle within an existing operational wind farm to optimize the use of transmission and connectivity infrastructure.

Successful bidders will enter into a 25-year power purchase agreement (PPA) with GUVNL and an e-reverse auction where buyers of this solar power from GUVNL will compete to secure their share of clean energy supply.

Last date to submit bids is August 23, 2022. Details of the request for selection (RFS) round are available on GUVNL's website.

This one follows tender for grid connected renewable energy and storage capacity under phase XV launched by GUVNL in June 2022 (see Gujarat's 500 MW RE & Energy Storage Tender).

India is a popular market for e-reverse auctions especially for solar as it is considered a helpful tool to bring down the cost of electricity supply by both central and state level agencies. However, this might change in the near future.

Recently, speaking at an event organized by the Confederation of Indian Industries (CII), Secretary of the Ministry of New and Renewable Energy (MNRE) Indu Shekhar Chaturvedi said the government has in-principle agreed to end e-reverse auction arrangement. However, as he pointed out such historically low bids discovered in e-reverse auctions adversely affected projects as developers 'faced 'the winner's curse' as import prices of components soared, and in some cases, bids had to be revised upwards'.