NTPC Auctions 560 MW Out Of 1 GW Solar Tender

• NTPC has completed the auction for 1 GW solar power capacity it launched in October 2019
• It has selected Tata Power Solar, L&T and Jakson Limited as winners of total 560 MW capacity
• Tata Power Solar has also received letter of award from the NTPC under CPSU Scheme Phase-II, Tranche-I for 250 MW project

The National Thermal Power Corporation (NTPC) in India has awarded 560 MW out of a 1 GW solar power tender to three companies. The tender was undersubscribed with bids totaling only 700 MW. NTPC floated the tender in October 2019 to be developed and grid connected on a develop-build-demonstrate-transfer (DBDT) basis (see 1 GW NTPC Solar PV Tender Under DBDT Scheme).

Capacity was allocated on the basis of the lowest EPC quote, according to Mercom India Research. The largest share was won by Tata Power Solar with 300 MW, followed by Larsen & Toubro Limited (L&T) securing 150 MW even though it bid for 300 MW. Jakson Limited took home 110 MW. Tata Power Solar quoted the lowest EPC value of INR 19.2 million ($271,87) for the capacity it won.

As per auction rules, in case of an undersubscribed tender, only 80% of bid capacity can be allocated.

Separately, Tata Power Solar also announced securing a letter of award (LOA) from NTPC for a 250 MW solar power project it will develop under the Central Public Sector Undertaking (CPSU) scheme which requires to use domestically manufactured solar cells and modules. It is the company's biggest single order from a third party, said Praveer Sinha, Tata Power CEO and MD.

The official statement from Tata Power Solar Systems does not specify where it plans to build the project, but shares that it needs to complete the project within 20 months. Total value of the order is INR 15 billion ($212.45 million) thanks to which its total order book, comprising external and internal orders, stands at close to INR 76 billion ($1.07 billion).

Tata Power Solar, along with being a solar EPC player, it also operates 400 MW of module and 300 MW of cell capacity at its Bangalore located production unit (see Tata Strongly Expands PV Production Capacity).

NTPC had launched  the Tranche-I solar tender under its CPSU Scheme Phase-II in June 2019 seeking EPC contractors for 1 GW capacity (see NTPC's 1 GW Solar Tender Under CPSU Scheme Ph-II). Under Tranche-II of the same scheme, NTPC tendered 923 MW capacity in December 2019.