Lowest bid in Gujarat reverse solar auction reaches INR 2.65/kWh

A reverse auction for 500 MW of solar power capacity in Gujarat has attracted bids as low as INR 2.65 (USD 0.041/EUR 0.035) per kWh, consultancy Mercom Capital Group on Wednesday.

The tender was launched by Indian utility Gujarat Urja Vikas Nigam Ltd (GUVNL) in May together with another auction seeking to award power purchase agreements (PPAs) for 500 MW of wind power in the state. Technical bids were gathered through a request for selection (RfS), while the lowest price was determined in an e-auction, GUVNL said previously.

According to Mercom, the company with the lowest proposal of INR 2.65 per kWh was jewellery maker GRT Jewellers India, which is entering the solar sector with a 90-MW project. The second and third lowest bids stood at INR 2.66 and INR 2.67 per kWh. They were made by Gujarat State Electricity Corp and Gujarat Industries Power Company, respectively, each to develop a 75-MW project.

The remaining 260 MW of the tendered capacity was won by Indian solar power producer Azure Power Global Ltd (NYSE:AZRE) at INR 2.67 per kWh.

The table shows details about the five companies with the lowest bids:

Overall, the 500-MW attracted 14 participants, with the capacity of the submitted technical bids exceeding 2 GW. The successful bidders will be awarded 25-year PPAs within one month from the date of issue of a Letter of Award (LoA), as part of GUVNL’s efforts to meet its renewable purchase obligations (RPOs) and address the future needs of its power distribution firms.

Project developers have to commission the solar plants within 18 months.

The lowest bid for solar power in India so far stands at INR 2.44 per kWh, received in May in a 500-MW tender in Bhadla, Rajasthan.

(INR 100 = USD 1.551/EUR 1.304)

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