GERC Approves Tariffs for 1,125 MW Solar Projects in Khavda Solar Park

The Gujarat Electricity Regulatory Commission (GERC) has sanctioned the tariffs discovered through Gujarat Urja Vikas Nigam Limited's (GUVNL) competitive bidding process to procure 1,125 MW of solar power for the Gujarat State Electricity Corporation’s (GSECL) solar park in Khavda. 

The approved tariffs are Engie Energy at INR 2.62 per kWh for 200 MW, NHPC at INR 2.66 per kWh for 200 MW, JSW Neo Energy at INR 2.66 per kWh for 300 MW, SJVN Green Energy at INR 2.66 per kWh for 200 MW, and NTPC Renewable Energy at INR 2.67 per kWh for 225 MW. The Commission has also authorised GUVNL to finalise Power Purchase Agreements (PPAs) with these developers.

GUVNL’s Phase XXIII tender aimed to secure 1,125 MW of solar power without energy storage for the GSECL’s Khavda solar park. The tender attracted six bidders with a combined capacity of 1,500 MW, surpassing the target. The bidders included SJVN Green Energy with a bid for 200 MW, NHPC for 200 MW, Engie Energy for 200 MW, NTPC Renewable Energy for 400 MW, JSW Neo Energy for 300 MW, and NLC India for 200 MW. 

Following bid evaluations, the financial bids of six technically qualified bidders were opened, with Engie, NHPC, JSW Neo Energy, SJVN Green Energy, NTPC Renewable Energy, and NLC India qualifying. NLC India was excluded from the e-reverse auction for being the highest bidder. Consequently, the remaining five bidders, totalling an aggregate capacity of 1,300 MW, advanced to the e-reverse auction.

The e-reverse auction yielded competitive tariffs with Engie Energy at INR 2.62 per kWh for 200 MW, NHPC at INR 2.66 per kWh for 200 MW, JSW Neo Energy at INR 2.66 per kWh for 300 MW, SJVN Green Energy at INR 2.66 per kWh for 200 MW, and NTPC Renewable Energy at INR 2.67 per kWh for 400 MW. 

In line with the tender document, small capacity plots of 60.24 MW and 64.76 MW were allocated to the last successful bidder, resulting in NTPC Renewable Energy receiving 225 MW. GUVNL issued Letters of Intent (LOIs) to the successful bidders, with PPAs to be signed within 30 days of the LOI issuance or within ten days of the Commission’s tariff adoption, whichever was later. GUVNL noted that the discovered tariffs were competitive, aligning with previously established tariffs ranging from INR 2.70 to INR 2.89 per kWh.

The GERC reviewed the discovered tariffs, noting that the geographical and technical conditions of the GSECL’s Khavda solar park contributed to tariff variations. Despite these challenges, the tariffs were deemed competitive. Consequently, the Commission adopted the tariffs and directed GUVNL to execute the PPAs as per the tender terms.