Alfanar Power, Juniper Green Energy, and RIH Renewables have collectively been successful in securing Gujarat Urja Vikas Nigam’s (GUVNL) latest bid to set up 500 MW grid-linked wind power ventures nationwide (Phase VI). Commencing last July, the auction incorporated an extra 500 MW possibility. The selected sites for the projects will be determined by the successful participants.
Alfanar quoted the lowest tariff of ₹3.42 (~$0.0411)/kWh to win 50 MW, followed by Juniper Green Energy, which quoted a tariff of ₹3.44 (~$0.0413)/kWh and won 90 MW. RIH Renewables, with a bid of ₹3.45 (~$0.0414)/kWh, secured 24 MW out of the 40 MW it had bid for. Solarcraft Power India also offered a tariff of ₹3.51 (~$0.0421) for 25 MW; however, it did not win the capacity. Out of the total 500 MW bid capacity, only 164 MW was allotted. In July of the preceding year, GUVNL initiated the tender process, allowing for the selection of project locations within India by the winning bidders. Those who emerge victorious in this bidding process are obligated to provide a performance bank guarantee valued at ₹2 million (~$24,287) per megawatt for the assigned capacity once the power purchase agreement (PPA) is formally signed.
The winning bidders are mandated to enter into a 25-year Power Purchase Agreement (PPA) with GUVNL. It is incumbent upon the developers of wind projects to undertake the responsibility of designing connections with the state or central transmission utility through a dedicated transmission line. This is crucial for the delivery of energy at the Gujarat Energy Transmission Corporation’s boundary. The projects are required to be operational within 24 months from the signing of the PPA. Initially, they should possess a minimum capacity of 25 MW for projects within the state and 50 MW for projects spanning across states. This capacity should either constitute the first segment of the commissioning process or reach at least 50% of the allocated capacity, whichever amount is lower.
Bids for projects in different phases, whether in progress or not yet operational, were welcomed. These initiatives, not constrained by extended Power Purchase Agreements (PPAs) or prior commitments, will be evaluated, given they haven’t already been approved under other federal or regional initiatives. For wind project proposals, the developer must ensure an annual capacity utilization factor (CUF) of at least 22%. They must sustain power generation within a range of +20% to -20% of the stated CUF throughout the entire duration of the Power Purchase Agreement (PPA). If there is a shortfall in performance, developers are obligated to provide compensation to GUVNL amounting to 50% of the agreed-upon Power Purchase Agreement (PPA) tariff. In the event that the generated power surpasses 20% of the officially declared annual Capacity Utilization Factor (CUF), developers have the opportunity to sell the excess electricity to any interested entity. However, it’s crucial to note that GUVNL retains the primary right to refuse or accept the purchase of this surplus power. GUVNL’s decision to choose to procure the surplus electricity depends on the compensation offered to the developer will be set at 75% of the PPA tariff.
GUVNL, Gujarat’s power utility, issued a call for proposals aiming to establish trial initiatives encompassing 250 MW/500 MWh standalone battery energy storage systems (BESS) within the region, operating under the mechanism of tariff-based global competitive bidding (Phase II). Following this, in August 2022, GUVNL initiated a bidding process specifically targeting the establishment of pilot projects featuring standalone battery energy storage systems of 1 GWh capacity in Gujarat.
