GUVNL Procurement Commission Advances Solar Power Tariff Adoption For 200 MW Capacity

In a recent development within the energy sector, a significant decision has been made regarding a bidding process conducted by GUVNL (Gujarat Urja Vikas Nigam Limited) under a Request for Selection (RfS) issued on March 18, 2020. The matter, which falls under the purview of the Electricity Act, 2003, involved the procurement of 700 MW of solar power to be set up in the Dholera Solar Park, Gujarat.

During the proceedings, it was noted that one of the respondents, Veena Energy Renewables Urja Pvt. Limited (VERUPL), was absent, citing personal reasons for their representative’s inability to attend. However, correspondence from their legal representatives was received, requesting an adjournment due to this unforeseen circumstance.

Representatives for GUVNL, the petitioner, informed the commission that they had extended offers to all selected bidders for the procurement of power from the proposed projects at the discovered tariff, inclusive of applicable taxes and duties up to the date of signing the Power Purchase Agreement (PPA). Respondent No. 1, TEQ Green Power Pvt. Limited (TGPPL), accepted these terms, while Respondent No. 2, VERUPL, did not respond, and Respondent No. 3, Tata Power Company Limited (TPCL), requested additional time for consideration.

It was highlighted that GUVNL had agreed to the tariff proposed by TGPPL, which was ₹2.81 per unit, inclusive of Basic Customs Duty (BCD) and other taxes, up to the date of signing the PPA. The commission was requested to approve and adopt this tariff for 200 MW of capacity allocated to TGPPL.

TGPPL, through their legal representative, confirmed their acceptance of the proposed tariff and urged the commission to secure the allocated capacity of 200 MW. They emphasized the urgency of the decision, considering the impending end of the financial year.

The commission considered the submissions and decided to proceed with an order regarding the adoption of the tariff for the 200 MW capacity allocated to TGPPL, given the urgency of the matter. However, they directed Respondents No. 3 and 4 to file their responses within a stipulated timeframe, indicating that further decisions regarding their bids would be made subsequently.

Acknowledging the adjournment request from VERUPL and with no objection from GUVNL, the commission postponed further discussions on their involvement. The next hearing was scheduled for March 2, 2024, at 11:30 A.M. Overall, the commission’s decision reflects a step forward in the energy procurement process, ensuring transparency and compliance with regulatory requirements while addressing the concerns of all parties involved.

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