Twitter
Advertisement

Gujarat Urja Vikas Nigam can buy 500 MW wind power at Rs 2.43/unit

It received online bids from 18 bidders offering aggregate 2,120 MW capacity, of which 12 bidders were shortlisted for e-reverse auction

Latest News
article-main
Picture for representational purpose
FacebookTwitterWhatsappLinkedin

In what could give a boost to renewable energy consumption, the Gujarat Urja Vikas Nigam Limited (GUVNL) has received approval from Gujarat Electricity Regulatory Commission (GERC) for buying 500 MW wind energy at the lowest-ever tariff of Rs2.43-2.45 per unit for a period of 25 years.

Last June, GUVNL had invited competitive bids for 500 MW wind power.

It received online bids from 18 bidders offering aggregate 2,120 MW capacity, of which 12 bidders were shortlisted for e-reverse auction.

At the end of the process, the final prices discovered for supply of electricity were in the range of Rs2.43-2.45 per unit.

A GUVNL official said that the utility signed power purchase agreements (PPAs) for a period of 25 years with eight successful bidders in January, and had approached GERC for approval of the PPAs.

"We accord our approval for the competitive bidding process conducted by the petitioner (GUNVL) for procurement of 500 MW power from grid-connected wind power projects," GERC said in its order dated May 31.

Of the 500 MW, GUVNL would procure 284.4 MW at Rs2.43 per unit, 179.9 MW at Rs2.44 per unit, and 35.7 MW at Rs2.45 per unit. The tariff is nearly half the tariff of Rs4.15 per unit paid for wind power under an earlier policy.

"This is the lowest ever tariff for wind energy in the country," GUVNL managing director Pankaj Joshi told DNA, while adding that the utility has already invited bids for another 500 MW wind power.

Under the renewable purchase obligation, GERC has fixed share of wind energy at 7.95% for the current year. This will go up by 0.10% every year to touch 8.25% by 2021-22.

POWER DEAL

  • Last June, GUVNL had invited competitive bids for 500 MW wind power.  
     
  • It received bids from 18 bidders offering aggregate 2,120 MW capacity, of which 12 bidders were shortlisted.
     
  • Of 500 MW, GUVNL would procure 284.4 MW at Rs2.43 per unit, 179.9 MW at Rs2.44 per unit, and 35.7 MW at Rs2.45
Find your daily dose of news & explainers in your WhatsApp. Stay updated, Stay informed-  Follow DNA on WhatsApp.
Advertisement

Live tv

Advertisement
Advertisement