Gujarat solar power auction sees winning tariff of Rs 2.65 per unit

A reverse auction of 500 MW of solar projects held by the Gujarat government on 19 September, 2017 saw the lowest winning bid at Rs 2.65 per kwH. This was the first solar auction held after the two conducted by Solar Corporation of India in May, when one of the winning bidders had promised to sell power at a record low of Rs 2.44 per kwH.

Since, Gujarat has less intense solar radiation than Rajasthan, and the developers will not be provided land in solar parks — they will have to acquire land on their own, it was expected to be a little higher.

The lowest bid, seeking 90 MW at Rs 2.65 per kwH, was made by GRT Jewellers India, a renowned name in the jewellery business. The company, headquartered in Chennai, is venturing into solar for the first time. The second and third lowest bidders were both state-owned power generation companies — Gujarat State Electricity Corporation and Gujarat Industries Power Company — bidding for 75 MW each at Rs 2.66 and Rs 2.67 per kwH, respectively.

The remaining 260 MW (out of 500 MW on offer) of projects were won by NYSE-listed Azure Power, one of the largest solar developers in the country, which also bid Rs 2.67 per kwH. Among 14 bidders in all, those who lost out were heavyweights such as Tata Power, ReNew Power, Fortum Solar, Lightsource Renewable Energy and Canadian Solar Energy.