Two Gujarat-based entities and two major Indian PV players have won capacity in Gujarat’s 500MW solar auction, held by Gujarat Urja Vikas Nigam Limited (GUVNL). Lowest bids came from Ahmedabad-headquartered firm Kalthia Engineering and Construction at Rs. 2.98 per unit and they took 50MW while power firm Gujarat State Electricity Corporation (GSECL), a wholly owned subsidiary company of the Gujarat Electricity Board, won 150MW at Rs. 3 per unit.
The four winners were as follows:
|Bidder||capacity awarded||tariff (INR/kWh)|
|Kalthia Engineering and Construction||50||2.98|
|Gujarat State Electricity Corporation||150||3|
Ali Imran Naqvi, vice president of advisory and engineering firm, Gensol Group, said,
“Gujarat’s 500MW solar auction seems to have bolstered the premise that solar is no more a rocket science and the economics are like a back-of-the envelope thing now. A simple glance over the range of tariffs (INR2.98-3.06/kWh) quoted by the winning bidders and the fact that the lowest bidder (Kalthia Engineering and Construction) has thrown its hat in the ring for the first time makes a strong case for this argument.”
There has been a significant rise in the tariffs since last year’s auction. In the last solar auction conducted by GUVNL winning tariffs were around Rs 2.7 per unit. Winners that time were GSECL and Azure Power taking upto 75 MW at Rs 2.66 per unit, and 260 MW at Rs 2.67 per unit respectively.
Gujarat’s solar tariffs are lower than those in Maharashtra and Karnataka because it is among the states with very high solar radiation.
Source: ET Energyworld