Tata Power Renewables Wins Dholera Solar Auction with Rs 2.75/kWh Bid

Tata Power Renewables Wins Dholera Solar Auction with Rs 2.75/kWh Bid

Tata Power’s renewable arm, Tata Power Renewable Energy has emerged as the winner in 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.

Tata Power Wins Dholera

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 250MW and 50MW 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 250MW.

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.

Tata Power Renewable Energy submit a bid of Rs 2.70/kWh for 200 MW, however, was awarded only 100 MW capacity.

GUVNL had cancelled the results from the first auction held in January, quoting the winning tariffs between Rs 2.84/kWh and Rs 2.89/kWh to be too high and not feasible. Now in its second attempt, the discom had lowered the solar park charges to Rs 30 lakhs per MW and set the ceiling tariff for the tender at Rs 2.70/kWh. The amendments to the tender resulted in an Rs 0.18/kWh price drop in the winning bids, however, unlike the first tender which was oversubscribed by 550 MW after receiving bids for 1250 MW. The latest tender remained undersubscribed, receiving bids for only 600 MW after offering 700 MW capacity.

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Ayush Verma

Ayush is a staff writer at saurenergy.com and writes on renewable energy with a special focus on solar and wind. Prior to this, as an engineering graduate trying to find his niche in the energy journalism segment, he worked as a correspondent for iamrenew.com.