National Thermal Power Corporation (NTPC), India’s largest energy conglomerate, has issued a tender to procure 1 GW of power on a short-term basis from existing solar and wind power projects in India.
The power company has set a first-round tariff bid ceiling for the energy it sources of Rs2.67/kWh.
Renewable energy projects with interstate transmission system connectivity will be eligible for the tender and the selection of generators will be carried out through reverse bidding, with a bid submission deadline of December 20.
A single bidder can submit an application for the entire 1 GW capacity and there is a minimum offered capacity from a single renewable energy project of 50 MW, rising in 10 MW multiples. Bidders can offer power from multiple solar and wind projects, but will have to quote one tariff for all the power plants concerned.
NTPC will sign one-year power purchase agreements, starting from the scheduled date of supply. PPAs can be extended by six months with the tariff remaining fixed.
The energy giant will bear the cost of getting medium-term open access to the transmission system owned by the central transmission utility. The power generator, however, will have to bear the cost of transmission, including any line construction, wheeling charges and losses.
Founded in 1975 to accelerate power development in India, NTPC’s installed capacity is 52,946 MW – including through joint ventures – and the estate is comprised of 21 coal-based power stations, seven gas facilities, a hydro station and a wind project. Nine of the company’s JV facilities are coal based and there are 11 jointly-owned PV projects.
By 2032, non fossil fuel-based generation capacity is set to comprise nearly 30% of NTPC’s portfolio, according to the company.