GUVNL Secures 416 MW of Renewable Energy At Reduced Tariffs From ₹3.24 to ₹3.30/kWh Through Competitive Bidding

The case revolves around a petition filed by Gujarat Urja Vikas Nigam Limited (GUVNL) seeking approval for tariffs discovered through a competitive bidding process. The process was conducted for procuring power from hybrid renewable energy projects. The petition involved several key players, including companies like KPI Green Energy Limited, and Juniper Green Energy Pvt. Limited, Hinduja Renewables Energy Pvt. Limited, and JSW Neo Energy Limited, are all bidding for a total capacity of 500 MW with the option of adding another 500 MW.

During the bidding process, GUVNL received online bids from four companies, offering a combined capacity of 520 MW. After evaluating the bids, GUVNL conducted an e-reverse auction, which resulted in the discovery of tariffs ranging from ₹3.24 to ₹3.39 per unit. Following the auction, GUVNL entered negotiations with the successful bidders to lower the tariffs. KPI Green Energy Limited ranked L1 in the auction and reduced its bid from ₹3.33 to ₹3.24 per unit for 50 MW. Other bidders also agreed to lower their tariffs, with Juniper Green Energy and Hinduja Renewables Energy reducing their rates to ₹3.30 per unit.

After negotiations, GUVNL awarded the base capacity of 416 MW across the four bidders. KPI Green Energy Limited received 50 MW, Juniper Green Energy 120 MW, Hinduja Renewables Energy 150 MW, and JSW Neo Energy Limited 96 MW. Additionally, the option to procure extra capacity under the Greenshoe option was explored, where KPI Green Energy agreed to provide an additional 320 MW and JSW Neo Energy agreed to provide 96 MW at the L1 negotiated tariff of ₹3.24 per unit.

The Commission reviewed the petition and heard the representations from all involved parties. All respondents, including KPI Green Energy, Juniper Green Energy, Hinduja Renewables, and JSW Neo Energy, confirmed they had no objections to the adoption of the discovered tariffs. The Commission considered the petition valid and acknowledged the importance of such power procurements to meet Renewable Purchase Obligations (RPO) targets. These targets are essential for Gujarat’s energy sustainability goals, particularly in light of increasing RPO percentages each year.

The competitive bidding process, followed by the negotiations, resulted in lower tariffs, ensuring cost-effective power procurement for the state. The Commission adopted the tariffs ranging from ₹3.24 to ₹3.30 per unit for the 416 MW capacity, with the possibility of additional capacity under the Greenshoe option. This move supports Gujarat’s efforts to meet its renewable energy targets while ensuring long-term price stability in the energy market.