Gujarat’s wind and solar energy projects delayed due to tepid response

Tepid response for Gujarat’s wind and solar energy projects led to a continuous bid postponement. The techno-commercial bids submission for the state’s 1,000 MW solar tender took place for the third time on Saturday and was able to attract only 50 MW.

According to industry officials, the tariff which was capped at Rs 2.75 per unit was responsible for the tepid response. They also consider it unviable.

First time when the tender was out for the project it did not receive a bid them, second time too met the same fate said people aware of the matter.

Gujarat Urja Vikas Nigam Ltd (GUVNL)  confirmed that the next submission date has been scheduled for May 4th.

A GUVNL executive speaking to ET said “We will not be raising the tariff because they feel it is unviable. We will have to do it at rates acceptable to us.

Experts also said that there were complications too  with building projects in the park beside the tariff.

Vinay Rustagi, managing director of renewable energy consultancy Bridge To India speaking to the publication said “The site is basically very close to the coast, so the ground is kind of swampy. This means that the cost of building a plant over there is much higher. The foundation that you need to put the structures into the ground for the modules will be higher by 10-12%.”  

Just last week GUVNL called for bids for its 1000 MW wind tender for second time, however it received bids for 853 MW of capacity as compared to 750 MW in the first time. The wind tender, too, has been postponed to May 4.

“We are not sure why it was not fully subscribed but we hope to see better participation the next time around,” said the official.