GUVNL 625 MW Solar Auction 2026: Welspun and NLC Win at Rs 2.34/Unit

Key Takeaways

• Agency: Gujarat Urja Vikas Nigam Limited (GUVNL)
• Capacity: 625 MWp solar power procurement
• Auction results announced: March 23, 2026
• Winners: Welspun Energy (300 MW) and NLC India Limited (300 MW)
• Discovered tariff: Rs 2.34 per unit (L1 tariff)
• Tariff range: Rs 2.34 to Rs 2.60 per unit across 23 bidders
• Development model: Build-Own-Operate (BOO) at suitable locations nationwide
• Module compliance: ALMM List-I modules with ALMM List-II cells mandatory
• PPA tenure: 25 years

What Is This Auction?

Gujarat Urja Vikas Nigam Limited (GUVNL) — Gujarat's state power procurement company — announced the results of its 625 MWp solar power auction on March 23, 2026. This tariff-based competitive bidding process attracted participation from 23 companies, reflecting strong developer interest in Gujarat's creditworthy offtake environment.

The auction saw intense price competition, with the lowest discovered tariff settling at Rs 2.34 per unit — a level that underlines how dramatically solar power costs have fallen in India and demonstrates the depth of competition among developers for GUVNL procurement contracts. For reference, Gujarat's record-low solar tariff was Rs 1.99/kWh in an earlier auction, and recent procurements have hovered in the Rs 2.30–2.70 range depending on project configuration and module sourcing requirements.

GUVNL is one of India's most active and creditworthy state power procurers. The company has a long track record of timely payments to renewable energy developers, which makes its auctions highly sought after and typically results in aggressive tariff competition.

Auction Results

The total awarded capacity is 625 MW, with the two main winners each securing 300 MW at the L1 (lowest) tariff of Rs 2.34 per unit. The allocation of the remaining 25 MW had not been publicly disclosed at the time of reporting.

Welspun Energy is part of the Welspun Group and one of India's established renewable energy developers with a significant portfolio of operational solar and wind assets. NLC India Limited (formerly Neyveli Lignite Corporation) is a Central Public Sector Enterprise (CPSE) under the Ministry of Coal that has been aggressively diversifying into renewables.

The tariff range of Rs 2.34 to Rs 2.60 across all 23 bidders reflects a competitive but not irrational market — with a spread of about 26 paisa between the most aggressive and more conservative bids.

Project Requirements and Compliance

ALMM Compliance

A defining feature of all GUVNL tenders in 2026 is mandatory compliance with the Ministry of New and Renewable Energy's Approved List of Models and Manufacturers (ALMM):

• ALMM List-I: Solar modules must be sourced from MNRE-approved module manufacturers
• ALMM List-II: Solar cells used in those modules must also be from MNRE-approved cell manufacturers

The ALMM mandate was introduced to promote domestic manufacturing and reduce dependence on Chinese cells and modules. As of 2026, India has significant ALMM-listed manufacturing capacity from companies including Adani Solar, Waaree, Vikram Solar, Premier Energies, and others. However, ALMM List-II (cell manufacturers) remains a tighter bottleneck than List-I, and developers must plan module sourcing carefully to ensure full compliance.

Development Model

Projects will be developed on a build-own-operate (BOO) basis, meaning the developer:

• Identifies and acquires suitable project land (anywhere in India for ISTS-connected projects)
• Designs, finances, builds, and owns the solar plant
• Operates the plant for the full 25-year PPA term
• Bears the risk of generation shortfalls and grid curtailment

The BOO model at ISTS-connected scale means projects can be sited in high-irradiance states like Rajasthan, Gujarat itself, or Andhra Pradesh, even though the power is ultimately consumed in Gujarat.

What This Means for Gujarat Industrial Solar Buyers

For industrial and commercial solar buyers in Gujarat, the Rs 2.34/kWh tariff from this GUVNL auction is an important benchmark. Here is how it compares to other procurement routes:

Utility procurement tariff (this auction): Rs 2.34/kWh — This is what GUVNL pays developers for bulk solar power. End industrial consumers buying from GUVNL pay a higher all-in tariff that includes transmission charges, distribution charges, and duties.

Open access solar: Industrial consumers in Gujarat can access solar at competitive rates through open access — either via third-party PPAs with solar developers or by setting up captive solar plants. Open access tariffs for large consumers have been in the Rs 4.50–5.50/kWh all-in range depending on the consumer's voltage level, charges, and GUVNL approval timelines.

Captive solar (rooftop or ground-mount): For large industrial consumers with sufficient land or rooftop, captive solar offers the most attractive economics — often delivering solar at effective cost of Rs 3.50–4.50/kWh all-in, including capital costs amortised over 20+ years.

The GUVNL auction's discovered tariff of Rs 2.34/kWh reflects the bulk procurement economics achievable at utility scale. It underscores that solar is now among the cheapest sources of new power generation in India, and industrial buyers who have not yet adopted solar are increasingly paying a premium relative to what is possible.

Gujarat is one of India's most solar-friendly states for industrial buyers — with strong irradiance, active open-access regulations under GERC, and a robust EPC ecosystem. For more on industrial solar in Gujarat, see our guide on solar EPC for industrial projects in Gujarat.

Context: GUVNL's Active 2026 Procurement Calendar

GUVNL has been one of the most active state procurers of renewable energy in 2025–26. In addition to this 625 MW solar auction, the company also conducted:

• January 2026: Wind Phase-X auction for 250 MW — won by Patel Infrastructure, Alfanar Power, KP Energy, and Powerica at tariffs of Rs 3.43–3.44/kWh
• Ongoing: 500 MW/1,000 MWh Battery Energy Storage System (BESS) auction won by Solarworld and H.G. Infra

GUVNL's multi-technology procurement strategy (solar, wind, BESS) reflects Gujarat's position as a leader in India's clean energy transition and the state government's commitment to balancing renewable generation with storage for grid stability.

Frequently Asked Questions

What tariff did GUVNL's 625 MW solar auction discover?

The L1 (lowest) discovered tariff was Rs 2.34 per unit (kWh). Welspun Energy and NLC India each won 300 MW at this tariff. The tariff range across all 23 participating bidders was Rs 2.34 to Rs 2.60 per unit.

Who won the GUVNL 625 MW solar auction?

Welspun Energy (300 MW) and NLC India Limited (300 MW) were announced as the primary winners. The allocation of the remaining 25 MW was not disclosed at the time of the announcement.

What does ALMM compliance mean for this project?

All solar modules must be sourced from the MNRE's Approved List of Models and Manufacturers (ALMM List-I), and the solar cells within those modules must be from manufacturers on ALMM List-II. This ensures Indian or MNRE-approved module supply chains and supports domestic manufacturing.

How does the Rs 2.34/kWh tariff compare for industrial buyers in Gujarat?

This is a utility-scale bulk procurement tariff — what GUVNL pays the developer directly. Industrial consumers buying power from GUVNL pay higher all-in tariffs including grid charges. For industrial buyers, captive or open-access solar typically offers more competitive all-in economics than grid purchase.

When will the 625 MW GUVNL projects be commissioned?

Specific project commissioning timelines were not disclosed in the auction results. Standard GUVNL solar PPAs typically require commissioning within 18–24 months of PPA signing. Given the March 2026 auction results, project commissioning would be expected around late 2027 to mid-2028.

Sources

• GUVNL Announces Results of 625 MWp Solar Power Auction — Renewable Watch (March 23, 2026)
• Welspun and NLC India Achieve INR 2.34/Unit Discovered Tariff in GUVNL 625 MW Solar Auction — Energetica India
• GUVNL Seals 625 MW Solar Tender at Rs 2.34/unit; Tariffs Drop Amid Intense Bidding — Saurenergy
• Gujarat Adopts Tariff of Rs 2.51/kWh for Procuring 860 MW of Solar Power — Mercom India
• Solarworld and H.G. Infra Win Gujarat's 500 MW/1,000 MWh BESS Auction — Mercom India