The reverse auctions for 500 MW of solar power held by the Gujarat government on Wednesday saw a tariff of Rs 2.98/unit, significantly up from the lowest solar tariff ever achieved — Rs 2.44/unit in the country (at Bhadla in Rajasthan) in May last year. Gujarat’s own auctions in September 2017 saw a tariff of Rs 2.65/unit. The latest bidding took place amid uncertainties related to the proposed 70% safeguard duty on imported cells and panels.
According to sources in the Gujarat Urja Vikas Nigam, Ahmedabad-based Kalthia Engineering secured 50 MW solar development project by quoting the lowest bid.
State-owned Gujarat State Electricity Corporation (GSEC) quoted the second lowest tariff of Rs 3/unit, winning 150 MW. ACME and Azure won 100 MW and 200 MW, respectively, by quoting Rs 3.06/unit each. Gujarat had also provided an additional 500 MW under the ‘greenshoe option’, where it can allocate the capacity to companies if they agree to match the lowest tariff — Rs 2.98/unit — achieved in the first auction.
The greenshoe option is learnt to be available only to companies who do not make it to the final list of bidders in the first auction. Gujarat is one of the few states over the last two or three years, where actual payment cycle by the distribution utilities to renewable power producers, is within the prescribed timelines. The state has one of the best solar radiation-receiving areas in the country, experts noted.