NTPC Seeking Bids From Govt Entities For 1 GW Solar

NTPC Issues Tender For Interested Government Entities To Procure Grid Connected 1 GW Solar Power Capacity Under CPSU Scheme Phase II; Kerala State Electricity Board Cancels 200 MW Solar Power Tender
12:36 AM (Beijing Time) - 07. June 2019
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While NTPC is ascertaining interest for 1 GW of solar power procurement among end users for capacity development, Kerala has cancelled a 200 MW tender. Pictured here is a view of Munnar in Kerala. (Photo Credit: Kerala Tourism, Department of Tourism, Government of Kerala)

Key Takeaways

  • Under CPSU Phase-II scheme, NTPC has issued a tender for government entities interested in procuring 1 GW of grid connected solar power capacity
  • Central or state government agencies or those where government has over 50% stake can apply for this tender latest by June 27, 2019
  • According to Mercom India Research, an EPC tender to develop this 1 GW capacity will be launched later
  • In tender news from the state of Kerala, it has cancelled a 200 MW solar tender launched in March 2019 as it received only 1 bid for the same; it is seeking administrative approval for a re-tender but projects could be developed anywhere in the country

The Indian National Thermal Power Corporation (NTPC) has invited online bids from government entities, central public sector undertakings (CPSU) and state public sector undertakings (PSU) for solar power supply from 1 GW of grid connected solar power projects as part of the CPSU Scheme Phase II. It will be followed by a forward auction.

The NTPC is asking central and state government entities or companies with 50% government stakes to respond to the tender by June 27, 2019. These entities will be the end users of the tendered solar power. Notice inviting bids is available on the tender website of NTPC.

NTPC will issue a call for EPC contractors to set up this 1 GW capacity later, according to Mercom India Research..

In February 2019, Indian cabinet approved INR 85.8 billion ($1.2 billon) in viability gap funding (VGF) for 12 GW grid connected solar power projects to be set up using domestically manufactured PV cells and modules (see India To Develop 12 GW Solar PV With Local Modules).

Following this, the Solar Energy Corporation of India launched a 2 GW grid connected solar PV tender capping bids at INR 3.50 ($0.051) per kWh (see SECI Launches RFS For 2 GW Tender Under CPSU Scheme).

The Hindu Business Line reported that NTPC is mulling to set up solar power plants without signing a power purchase agreement (PPA), as solar is the cheapest power source. Instead, solar power generated could be sold through power exchanges or any such format.

Kerala cancels 200 MW tender

In another tender news from Indian state of Kerala, the Kerala State Electricity Board Limited (KSEBL) has cancelled a 200 MW solar tender for ground mounted capacity it issued in March 2019 while submitting a request for approval for a re-tender for procurement from anywhere in India and not limiting its scope within the state alone.

In response to the tender, KSEBL received only 1 bid for 10 MW capacity from CIAL Infrastructures Ltd., Kochi that was able to submit all requisite documents within the expected timeframe.

This 200 MW tender is part of the state’s Soura project through which it aims to have 1 GW of solar power by the year 2021.

Anu Bhambhani

Anu Bhambhani is the Senior News Editor of TaiyangNews

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