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No takers for Gujarat's 1k-MW solar auction

Bengaluru: In a setback for Gujarat’s renewable energy drive, its latest solar auction of 1000 MW got no bids at all because developers felt the ceiling tariff it had set was too low. 

Tuesday was the last day for submitting techno-commercial bids for the 1000 MW auction, for projects to be set up at the state’s Dholera Solar Park, but not a single developer responded. The auction has now been postponed to March 19. 

Gujarat Urja Vikas Nigam Ltd (GUVNL), which is conducting the auction, confirmed the development. “We heard from various bidders yesterday that they did not want to participate at the moment,” said a GUVNL executive. 

The tariff was capped at Rs 2.75 per unit which developers felt was unviable for Dholera, because of its location. “The ceiling tariff is unrealistic because of the quality of the site. It is not plain land, the terrain is problematic, the construction cost there will be higher,” said a developer on the condition of anonymity.   

But the GUVNL executive said no changes will be made to the tender conditions when bids are sought again. “We will not increase the ceiling tariff either,” he said. 

GUVNL has been unhappy with the discovered price at some of its earlier auctions, finding them too high. It cancelled the results of a 700MW solar auction held in December for projects at Raghanesda solar park because it felt the winning tariff there, Rs 2.84 per unit, was higher than warranted. Since the high tariff was attributed to high charges at this particular solar park, it told winning developers that the state would reduce park charges and go for another round of bidding. However, this has not been held so far. Earlier, it also cancelled a 500 MW auction held in March at which the lowest price reached was Rs 2.98 per unit. 

The only recent auction GUVNL has accepted lately was the one held in February this year, for 500 MW, at which winning bids ranged between Rs 2.55 and Rs 2.68 per unit.