Gujarat Urja Vikas Nigam Limited (GUVNL) has issued a Request for Selection (RfS) of solar developers to purchase power from 500 MW grid-connected solar photovoltaic power projects. GUVNL shall enter into a power purchase agreement with successful bidders for 25 years from the project’s scheduled commercial operation date.

Successful bidders are expected to set up the transmission network up to the delivery point for the solar project. They must secure all necessary permits and clearances required for setting up the project, including connectivity and land registration. Combining the transmission work has been the state agencies way of avoiding disputes linked to delays in transmission works completion previously, which have led to major legal issues.

The minimum project capacity shall be 25 MW. Projects under construction and for which any PPA has not been signed can also be offered.

Solar projects will also be allowed to be set up in an existing wind farm already connected to the grid, subject to the availability of spare capacity for RE integration at the corresponding GETCO/CTU substation.

REGlobal’s Views: State level auctions have become a viable option for many developers in India in recent months, thanks to delays in signing of PSA’s when it comes to centrally auctioned tenders. States with a decent payment record are stepping in with their own tenders accordingly. Gujarat has already seen a rate of Rs 1.99 per kWh for its tenders during Phase XI auctions – a pointer to the sort of bids it will expect.