majorAvaada Energyon Thursday received a letter of intent (LoI) from theGujarat Urja Vikas Nigam Ltd(GUVNL) to set up a 400 MW (DC) solar project in Gujarat. The company has won 200 MW under base capacity at a tariff of Rs 2.75/kWh and another 200 MW under green shoe option at a tariff of Rs 2.71/kWh from GUVNL under tariff-based competitive bidding process followed by an e-reverse auction.
As per the bid terms, the solar power generated from the project will be supplied to GUVNL for 25 years, and the projects will be commissioned within 18 months from the date of execution of the power purchase agreements (PPAs). The solar project has the potential to provide green power to some five lakh households.