March 29 (Renewables Now) - A recent solar tender in the Indian state of Gujarat, targeting 500 MW of grid-connected capacity, has received bids as low as INR 2.98 (USD 0.046/EUR 0.037) per kWh.
The tender was launched in February by Gujarat Urja Vikas Nigam Limited (GUVNL) and included a competitive bidding process and a reverse auction. According to consultancy Mercom Capital, the lowest tariff of INR 2.98 per kWh was offered by Kalthia Engineering and Construction, which won a 50-MW project. The second lowest proposal, of INR 3 per kWh, came from state-owned Gujarat State Electricity Corporation (GSEC) for a 150-MW project.
ACME Solar and Azure Power (NYSE:AZRE) both offered INR 3.06 per kWh, securing 100 MW and 200 MW of capacity, respectively. While it bid for 250 MW of the total capacity, Azure Power won 200 MW.
Successful developers will be awarded 25-year PPAs with GUVNL, which also offered the so-called “greenshoe option” for an extra 500 MW of photovoltaic (PV) projects. PPAs for the additional capacity could be signed at the lowest quoted tariff.
GUVNL has initiated several tenders for wind and solar capacity to fulfill its Renewable Purchase Obligation (RPO) and achieve a goal of procuring 7,000 MW of renewables capacity by 2022. In a solar auction it held last year, tariffs fell as low as INR 2.65 per kWh.
(INR 10 = USD 0.153/EUR 0.125)