GERC Approves Tariff For GUVNL’s 1000 MW Solar Tender (Phase XXV), Boosting Gujarat’s Renewable Push

Gujarat Urja Vikas Nigam Limited (GUVNL) filed a petition before the Gujarat Electricity Regulatory Commission seeking approval for adopting the tariffs discovered in its Phase XXV solar power tender, which aimed to procure 500 MW of solar energy through a competitive bidding process followed by an e-reverse auction. The tender also included a greenshoe option for an additional 500 MW without energy storage.

GUVNL, acting on behalf of Gujarat’s four distribution companies, conducted this bidding process in line with the Ministry of Power’s guidelines. The tender attracted twelve bids totaling 795 MW, out of which eleven were technically qualified, and one was disqualified due to not meeting the definition of a bidder under the tender conditions.

After evaluating the bids, GUVNL opened the financial bids and excluded the highest bidder. Ten bidders qualified for the e-reverse auction, which was conducted on 22 October 2024. The lowest tariff discovered during the auction was ₹2.55 per unit. Seven bidders were declared successful for the base 500 MW capacity, including S.B.B. Mouldings Pvt. Ltd., Kintech Synergy, Enertech Fuel Solutions, Prozeal Green Energy, Ausom Enterprise, Drashta Green Power, and SAEL Industries.

GUVNL also offered additional greenshoe capacity at the L1 tariff of ₹2.55 per unit. Among the successful bidders, only Enertech Fuel Solutions, SAEL Industries, Kintech Synergy, and Drashta Green Power accepted the additional allocation. Enertech accepted the highest greenshoe capacity of 203 MW, while some companies like Prozeal and Ausom declined it. This led to Enertech’s total allocation reaching 243 MW. In total, GUVNL allocated 1000 MW of solar capacity through this process.

The discovered tariff range of ₹2.55 to ₹2.56 per unit was considered competitive when compared with previous GUVNL tenders and recent central government tenders. GUVNL emphasized that such procurement helps meet renewable purchase obligations (RPO) and contributes to national clean energy targets, including catering to agricultural demand through solar energy during daytime under schemes like Kisan Sarvodaya Yojana.

Each successful bidder was issued a Letter of Intent on 11 November 2024. The Commission received affidavits from all successful bidders confirming acceptance of their awards and expressing no objection to the Commission adopting the discovered tariffs. The hearing was held on 26 November 2024, during which the Commission raised queries related to Capacity Utilization Factor (CUF). GUVNL explained that all bidders were required to quote a minimum CUF of 22%, and a lower generation than the committed CUF would result in penalties.

The Commission directed GUVNL to furnish all documentation related to the bidding process in future tariff adoption petitions and emphasized the need for full disclosure. GUVNL submitted the requested details, affirming that the bidding process adhered to national guidelines and ensured fairness and transparency.

The Commission acknowledged the petition and the process followed, setting the stage for adopting the tariffs that support Gujarat’s energy transition objectives while ensuring cost-effective procurement.