Gujarat expects Rs500 billion worth of renewables MoUs

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At the Vibrant Gujarat Global Summit 2019, starting on January 18, the state government expects to sign memoranda of understanding with solar developers keen to set up renewable energy projects in Gujarat, according to Indian news agency IANS.

State-owned Gujarat Power Corp Ltd will also lay the foundation stone for a Rs250 billion, 5 GW solar park at the summit, with the development planned in the Dholera special investment region, according to the agency.

And fellow public body the Gujarat State Electricity Corp Ltd will begin commercial production of a Rs3.23 billion, 75 MW PV plant at Dewan in the Anand district, according to IANS.

To meet a renewable purchase obligation requirement that 17% of electricity is generated from green energy sources by 2022, the Gujarat government plans to add 3 GW of clean energy capacity annually over the next three years, including 2 GW of solar and 1 GW of wind, according to quotes attributed to Pankaj Joshi, managing director of Gujarat Urja Vikas Nigam Ltd (GUVNL) in a report run by the Times News Network.

“GUVNL will soon invite bids for 1 GW [of] solar power projects to be developed in the first phase of [the] 5 GW Dholera Solar Park,” said Mr. Joshi. “A tender for procurement of power from solar and wind hybrid projects will also be floated in the near future.”

In Gujarat, renewables contribute around 28% of the total 27.2 GW of power generated. To meet its RPO target, GUVNL buys electricity from private and public sector renewable power project developers at tariffs reached through competitive bidding.

At a solar auction conducted by GUVNL last month, foreign developers secured the entire 700 MW capacity available, with SB Energy – backed by Japanese multinational SoftBank – awarded 250 MW at the lowest tariff of Rs2.84 per unit. Finnish developer Fortum also bagged 250 MW and French major Engie negotiated 200 MW, both for Rs2.89 per unit.

This text was amended on 07/01/19 to reflect Gujarat state does not have to sign a memorandum of understanding with the state owned Gujarat Power Corp Ltd.