Gujarat to conduct auctions for 500-MW solar projects

By: | Published: February 10, 2018 5:52 AM

Gujarat is inviting tenders to set up 500 MW of solar projects in the state under the reverse-auction mechanism, under which bidders who quote the lowest tariffs for selling power get to develop projects.

Gujarat, Gujarat solar projects, solar power, solar power project, solar energy, solar projcts, solar energy projects, solar auctionsIn the last auction, Chennai-based GRT Jewellers quoted the lowest tariff of Rs 2.65, winning a capacity of 90 MW.

Gujarat is inviting tenders to set up 500 MW of solar projects in the state under the reverse-auction mechanism, under which bidders who quote the lowest tariffs for selling power get to develop projects. The state has 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 discovered in the auction for the initial 500 MW. A senior official from Gujarat Urja Vikas Nigam told FE that the greenshoe option would only be available to companies which do not make it to the final list of bidders vying for the first 500 MW auction. The reverse auction is expected to be completed in the final week of March, the person added. The state had invited tenders for 500 MW each of wind and solar power in June 2017. The auctions resulted in ultra-low tariffs of Rs 2.65 per unit for solar and Rs 2.43 per unit for wind.

In the last auction, Chennai-based GRT Jewellers quoted the lowest tariff of Rs 2.65, winning a capacity of 90 MW. The Gujarat state electricity board and Gujarat Industries Power Company won 75 MW each, with both the companies agreeing at a tariff of Rs 2.66 per unit. The remaining 260 MW was won by Azure Power for Rs 2.67 per unit.

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