SJVN, Hinduja Renewables, Avaada, Solarcarft and Sprng Energy Triumph in GUVNL’s 500 MW Solar Phase-XXII Auction

The Gujarat Urja Vikas Nigam Limited recently concluded a competitive bidding process for the procurement of solar power under Phase-XXII, incorporating a Green Shoe Option. The tender, which attracted significant attention, had a tendered capacity of 500 MW and culminated in a reverse auction held on December 26, 2023.

The opening of the L1 tariff, a critical parameter in determining the most competitive bid, stood at an impressive INR 2.63 per kilowatt-hour (kWh). This marked the starting point for the reverse auction, where participating bidders vied to offer the most favorable tariff for the solar power capacity on offer.

Several reputable companies participated in the bid, each presenting their bid capacity in megawatts (MW) alongside the final tariff they proposed. Notably, SJVN Green Energy Limited secured an award for the entire bid capacity of 100 MW at the opening L1 tariff of 2.63 INR/kWh. Hinduja Renewables Energy Pvt. Ltd. secured 140 MW at a slightly higher tariff of 2.64 INR/kWh, while Avaada Energy Private Limited was awarded 100 MW at a tariff of 2.65 INR/kWh.

Solarcarft Power India 5 Pvt. Ltd. secured a bid capacity of 50 MW, matching the tariff of 2.65 INR/kWh. Finally, Sprng Energy Private Limited was awarded 110 MW out of their bid capacity of 150 MW at a tariff of 2.66 INR/kWh.

The results reflect a competitive landscape in the solar power sector, with various companies striving to offer the most economically viable tariffs. The allocation of capacities and the associated tariffs demonstrate a nuanced evaluation process by the tendering agency, aiming to balance cost-effectiveness with the need for widespread renewable energy adoption. This successful auction is a significant step forward in Gujarat’s commitment to expanding its solar energy capacity and fostering sustainable development in the region.