Tata Power Renewables Bags Dholera Solar Auction at Rs 2.75/kWh Bid

Tata Power Renewable Energy has announced that it has secured the latest solar auction conducted by the Gujarat Urja Vikas Nigam Limited (GUVNL) for awarding 1000 MW capacity to be built at the Dholera Solar Park.

In response to the 1000 MW tendered capacity, and in the third time of asking after having to extend the deadline for the tender twice, GUVNL received bids from only two bidders. Tata Power Renewable Energy and state-owned Gujarat Industries Power Company Ltd (GIPCL), with bids for 250 MW and 50 MW capacity respectively at a tariff of Rs 2.75 per unit. Tata Power was chosen as the winner through a draw of lots since GUVNL will be allotting only 250 MW.

The low response from developers was largely attributed to the ceiling tariff set for the tender by the GUVNL, at Rs 2.75 per unit. Which in the industry opinion, was unviable and unrealistic because of challenges with the terrain due to which construction costs are expected to be on the higher side.

Recently, the discom, in its second attempt to auction solar projects worth 700 MW at the Raghanesda Solar Park, received tariff bids which it deemed low enough to award contracts. In the latest round of auctions for 500 MW solar capacity, Electro Solaire Pvt. Ltd. won 200 MW capacity with the L1 bid of Rs 2.65/kWh. Down Rs 0.18/kWh compared to the winning bid from the last time the tender was auctioned in January. State-owned Gujarat State Electricity Corporation was awarded 100 MW capacity with the L2 bid of Rs 2.68/kWh, and Gujarat Industries Power Company Limited also won the same capacity with their bid of Rs 2.68/kWh.