GUVNL Issues Tender For 500 MW Non-Park-based Solar Power Projects

Gujarat Urja Vikas Nigam Limited (GUVNL), the state electricity regulation board of Gujarat, has issued a Request for Selection (RfS) for procurement of power through Competitive Bidding from 500 MW Non-Park based Solar Power Projects with a Greenshoe option of an additional 500 MW. Prices are likely to be in the range of Rs 2.45 and above considering the fast changing ground situation with respect to energy prices and other factors.

The state electricity regulator moves to fulfil the renewable power purchase obligation (RPPO) through solar power, while also meeting the future requirement of the distribution companies.

A bidder can submit multiple bids for a maximum cumulative capacity of 500 MW. This includes the capacity offered under the Greenshoe option. However, the 500 MW capacity selection under Greenshoe will be at GUVNL’s discretion.

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GUVNL can enter into a power purchase agreement with the successful bidders for 25 years from the project’s commercial operation date (COD).

The instructions for the bidders are as follows.

• The last date for online submission of bids is May 18, 2022, at 5:00 PM. The bids will be opened on May 23, 2022.
• The tender processing fee is Rs 300,000  plus 18% goods and service tax (GST). It is non refundable.
• The document fee is Rs 25,000  plus 18% GST. It is also non-refundable.
• Bidders need to submit an earnest money deposit of Rs 400,000/MW as a bank guarantee.
• When signing the PPA, successful bidders will have to submit a performance bank of Rs 944,000/MW, including GST.

The minimum project capacity must be 25 MW. Further, obtaining the approvals, permits, and clearances crucial for setting up the project will be the responsibility of the successful bidders. This includes connectivity and land registration as well.

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Furthermore, the project should be designed to deliver energy at the Gujarat Energy Transmission Corporation (GETCO) periphery. The successful bidders are also responsible for obtaining the grid connectivity with GETCO or the central transmission utility (CTU).

Solar projects can be set up in the existing grid-connected wind farms. This is subject to the availability of spare capacity for renewable energy integration at corresponding GETCO or CTU substations. Such projects must also comply with the clauses in the request for selection document and are subject to GETCO or CTU’s agreement for utilizing the connectivity granted to wind farms.

Gujarat Energy Development Agency (GEDA) will act as the state nodal agency and will facilitate the approvals as per requirements.

For eligibility, the bidder must have a net worth of not less than Rs.80 lacs /MW of the quoted capacity as of the last financial year or the one before that. The bidders from the countries sharing a land border with India are also eligible to bid the tender.

In addition, successful bidders have to declare the annual capacity utilization factor (CUF) at the time of bid submission. This must not be less than 17 per cent. The CUF, once declared, will not change for the entire term of the PPA. The annual CUF must not be less than 15 per cent and shall remain within range of +10 to -20 per cent of the declared annual CUF, until the end of the PPA duration of 25 years.

The compensation of 25 per cent of the PPA to the GUVNL will be a liability to the successful bidders in case of failure to generate minimum energy as per the annual CUF. Conversely, over and above 10 per cent of the declared CUF generation, the developer may be free to sell it to any other entity, providing the first right of refusal to GUVNL. If GUVNL purchases this excess power, it will be at 75 per cent of the PPA tariff. Successful bidders are also allowed to repower their plants from time to time, as long as overall parameters remain within the 17% CUF.

The bidders may refer to the following website link for more detailed information.

Gujarat Urja Vikas Nigam Limited