Gujarat Witnesses Lowest-Ever Bid For Utility-Scale Solar Power Project

In Clean News, News, Renewable Energy, Solar

A subsidiary of US-based UPC Energy Limited quoted the lowest tariff bid of Rs 2.55/kWh in an auction of 500 megawatts solar power capacity in Gujarat.

The company, UPC Solar, secured rights to develop a 50-megawatt solar power project through a special purpose vehicle (SPV) formed for the specific purpose of participating in this auction. 

The tender issued by Gujarat Urja Vikas Nigam Limited (GUVNL), a government-owned power distribution utility, to installation of 500-megawatt capacity in one of the solar parks in the state. The tender was issued in January 2019 and no maximum tariff bid limit had been set.

While no maximum limit for tariffs was set by GUVNL, the bids were expected on the lower side nonetheless. Gujarat has been infamous to cancel or annul solar power tender citing higher-than-expected bids. The state has cancelled at least two such tenders citing higher bids from project developers.

In this latest tender, the range of winning bids is quite broad as well, from 3.59¢/kWh to 3.77¢/kWh. This wide range may attract attention of GUVNL.

The Solar Energy Corporation of India annulled the allocation of 2.4 gigawatts of capacity in the largest solar power tender in India due to the wide range of winning bids.

Reference- Clean Technica, Mercom India

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