- NTPC has issued a tender for 1 GW solar power capacity to be set up across the country
- Winning developers will enter 25-year PPA with NTPC that plans to purchase power for the 1st year for INR 1.91 per kWh
- With every passing year the tariff will increase by INR 0.01 per kWh till 25th year
The National Thermal Power Corporation (NTPC) has sought solar power developers to set up 1 GW solar power capacity connected to the interstate transmission system (ISTS), to be located anywhere across the country.
It plans to purchase power generated from these plants to replace with thermal power of Solapur and Kudgi Thermal Power Stations under the scheme of Ministry of Power’s Flexibility in Generation and Scheduling of Thermal Power Stations to reduce emissions scheme. Under this scheme, generating company gets flexibility to supply renewable power against schedule received for thermal power with a view to reduce the overall cost of generation of a generating company.
The tender notice specifies that NTPC will purchase power generated from the projects under a 25-year power purchase agreement (PPA) for an initial tariff of INR 1.91 ($0.025) per kWh for the 1st contract year, which will later to escalated at a rate of INR 0.01 ($0.0001) per kWh till 25th year.
Winners will be selected on the basis of lowest quoted ‘SPV handover cost’ through competitive bidding, states the NTPC, and adds that it shall reserve the right to take over the special purpose vehicle (SPV) formed after completion of 5 years from the date of commercial operations starting.
Technical and financial bids will be accepted by NTPC till May 27, 2021.