Bengaluru: The record low tariff of Rs 1.99 per unit reached at a solar auction in Gujarat in December has had an immediate fallout, with the state cancelling the results of two previous auctions where the discovered tariffs were much higher.Gujarat’s main power distribution company, Gujarat Urja Vikas Nigam Ltd (GUVNL), has now obtained permission from the state power regulator to hold the auctions again for the 700MW Dholera Solar Park and the 100MW Raghanesda Solar Park.In the previous auctions conducted in August-September last year, the discovered tariff for Dholera was between Rs 2.78 and Rs 2.81 per unit with five winners who were allotted 100-200MW each. It made similar observations while permitting retendering for the Dholera park.Queries sent to a GUVNL official remained unanswered as of press time Sunday. GUVNL has cancelled auctions and attempted to renegotiate tariffs in the past as well. "This is not good for the industry. They had arm twisted developers last year too in an attempt to renegotiate wind tariffs after the auction was conducted," said a developer, requesting anonymity.

Source: Economic Times February 01, 2021 02:22 UTC