GUVNL awards 625 MWp solar capacity at Rs 2.34 per unit

Gujarat Urja Vikas Nigam Limited (GUVNL) has awarded 625 MWp of solar capacity at a tariff of Rs 2.34 per unit, with Welspun Renewable Energy and NLC India Limited securing 300 MW each. The bids were finalised around five months after the tender was issued in November last year.

The discovered tariff is lower than GUVNL’s previous solar auction, which closed at Rs 2.60/kWh and saw allocations to Welspun Energy, Avaada Energy, and SAEL Industries. A separate 500 MW round in December 2024 had also remained above Rs 2.55 per unit, with analysts attributing firm pricing to the Approved List of Models and Manufacturers (ALMM) and domestic content requirements.

Under the current tender, developers will build, own, and operate the projects at locations of their choice across India, with no fixed sites specified by GUVNL. Solar modules are required to be sourced from the Ministry of New and Renewable Energy’s (MNRE) ALMM List-I, while the cells used must come from ALMM List-II certified manufacturers.

Companies that participated but did not secure capacity include KPI Green Energy, Waaree Energies, PNC Infratech, Spring Energy, SAEL Industries, Krishna Corpindia, Sunstream Green Energy, Terra Clean, Soleos Energy, Helioact Power India, Saju Industry, and MB Power Madhya Pradesh.

The Rs 2.34/kWh tariff is the lowest recorded by GUVNL in its recent solar auctions, extending a downward trend despite procurement constraints linked to ALMM compliance. The sustainability of this tariff level will depend on outcomes in upcoming state-level auctions.

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