Amid peak demand in Gujarat, GUVNL floats tender for renewable projects

Amid peak demand in Gujarat, state utility Gujarat Urja Vikas Nigam (GUVNL) has floated two separate tenders for procurement of 1,000 megawatts (Mw) power through bidding from wind and solar power projects.

The tenders have been floated for 500 Mw wind power projects and 500 Mw solar power projects. While the last date for submission of bids is July 10, technical bids shall be opened on July 11. The bidding will be followed by an e-reverse auction on July 17 and 18 for the wind and solar tenders, respectively.

Moreover, 75 Mw has been reserved for central and state public sector undertakings (PSUs) as well as government-controlled organisations. 

According to GUVNL, these organisations are willing to execute power purchase agreements (PPAs) with GUVNL at the lowest tariff under first come first served basis.

The bids have been invited to fulfil renewable power purchase obligations (RPO) as well as to meet future needs of the four discoms under GUVNL. The RPO calls for a minimum percentage of total power consumption to be procured through renewable sources.

According to experts, GUVNL has been looking to meet the RPO mandate, given that average total power consumption stands at 15,000 Mw.

The floating of tenders also comes at a time when private power producers like Adani Power have recently stopped partial supply of power to GUVNL.

A senior GUVNL official said on condition of anonymity that the fall in supply from private producers led the state utility to turn to costlier gas-based sources, which could now be substituted with greener sources. However, these renewable sources are witnessing competitive pricing.