Indian utility launches 500-MW wind tender in Gujarat

Wind turbines in India. Featured Image: OlegD/Shutterstock.com

February 27 (Renewables Now) - Power utility Gujarat Urja Vikas Nigam Ltd (GUVNL) on Friday launched a request for selection (RfS) for the deployment of 500 MW of grid-connected wind capacity and related transmission infrastructure across the state.

The auction is open to both domestic and foreign developers on the condition that parties from outside India create special purpose vehicles (SPVs) under the Indian Companies Act that will give them the right participate. The deadline for submitting proposals is April 2, according to consultancy Mercom Capital.

An additional capacity of 500 MW under the so-called “greenshoe option” may also be offered to participants willing to sign power purchase agreements (PPAs) with GUVNL at the lowest quoted tariff. That particular tariff will be set through the competitive bidding process and an e-reverse auction. GUVNL noted that central and state public sector undertakings, as well as government entities, will have priority in exercising the greenshoe option.

Each candidate will be able to bid for a minimum of 25 MW, while an upper limit for project capacity has not been defined. Successful bidders will be awarded 25-year PPAs with GUVNL within one month from the date of issue of Letter of Award (LoA). Meanwhile, developers will have to provide financing for their projects within seven months from the PPA signing date.

In an earlier wind auction conducted by GUVNL at the end of last year, tariffs reached a record-low level of just INR 2.43 (USD 0.037/EUR 0.030). The utility shortlisted 12 candidates in the 500-MW competitive round, representing projects totalling 1,527.4 MW.

(INR 10 = USD 0.154/EUR 0.125)

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