GUVNL Seeks Adoption Of Solar Power Tariff Discovered Through Competitive Bidding For 500 MW Projects

Representational image. Credit: Canva

Gujarat Urja Vikas Nigam Limited (GUVNL) has filed a petition with the Gujarat Electricity Regulatory Commission (GERC) seeking the adoption of the tariff discovered through the Competitive Bidding Process under the Request for Selection (RfS) No. GUVNL/500 MW/Solar (Phase XXV) dated August 20, 2024. This process involves the procurement of power from 500 MW grid-connected Solar Photovoltaic (PV) Power Projects, which can either be under construction, already commissioned, or set up anywhere across India. The petition also includes a greenshoe option, offering an additional capacity of up to 500 MW, without the requirement of energy storage.

In the hearing, held on November 26, 2024, GUVNL explained the details of the bidding process. The bidding process was initiated with the issuance of a tender on August 20, 2024, which was published in two English daily newspapers and one Gujarati newspaper. In response, GUVNL received bids from 12 bidders offering a total capacity of 795 MW. However, one of the bidders did not meet the qualifications as per the terms of the RfS and was disqualified.

The technical bids were opened on October 15, 2024, and the financial bids of the qualified bidders were opened on October 22, 2024, in the presence of the Bidding Evaluation Committee. Gala Energy Pvt. Limited emerged as the H1 bidder, quoting a tariff of ₹2.97 per unit. Subsequently, an e-reverse auction was conducted for the remaining bidders, with the discovered tariff ranging between ₹2.55 to ₹2.62 per unit. According to the RfS Clause 4.4.1, bidders within a 2% range of the lowest tariff were also considered for selection. The final discovered tariff for the successful bidders was in the range of ₹2.55 to ₹2.56 per unit.

The list of successful bidders and their respective capacities include S.B.B. Mouldings Private Limited (10 MW) at ₹2.55, Kintech Synergy Pvt. Limited (50 MW) at ₹2.55, Enertech Fuel Solutions Pvt. Limited (40 MW) at ₹2.55, Prozeal Green Energy Limited (100 MW) at ₹2.55, Ausom Enterprise Limited (50 MW) at ₹2.55, Drashta Green Power Limited (10 MW) at ₹2.55, and SAEL Industries Limited (240 MW) at ₹2.56. The total successful capacity awarded was 500 MW, the maximum tendered capacity.

GUVNL also offered additional capacity to successful bidders through the greenshoe option at the L1 tariff of ₹2.55 per unit. The following bidders accepted additional capacity: Kintech Synergy Pvt. Limited (50 MW), Enertech Fuel Solutions Pvt. Limited (203 MW), Drashta Green Power Limited (7 MW), and SAEL Industries Limited (240 MW).

Regarding the Capacity Utilization Factor (CUF), GUVNL noted that some bidders had quoted different CUFs, ranging from 22% to 30%. The bidders who quoted lower CUFs were S.B.B. Mouldings Pvt. Limited, Kintech Synergy Pvt. Limited, Enertech Fuel Solutions Pvt. Limited, and Drashta Green Power Limited, with CUFs at 22%. On the other hand, Prozeal Green Energy Limited, Ausom Enterprise Limited, and SAEL Industries Limited quoted higher CUFs at 27.5%, 27%, and 30%, respectively.

During the hearing, Mr. Tirth Nayak, representing Ausom Enterprises Limited, stated that the company had no objection to the adoption of the tariff discovered through the competitive bidding process. GERC observed that GUVNL had failed to provide all relevant details related to the bidding process and its proceedings. The Commission had made similar observations in a previous petition, highlighting the need for more transparency. GUVNL was directed to submit all relevant documents, from the initiation of the bidding process to the completion of the bidding and the filing of the petition, within a week. The Commission reserved its order after this hearing.

 

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