NTPC 1.2 GW ISTS-connected solar projects tender oversubscribed: Sources

• Among the bidders who have thrown their hats in the ring are ReNew Power, Tata Power, Azure Power, AMP Solar and O2 Power

• Sources also claimed that NTPC has received bids for a total of 1.7 GW of projects

New Delhi: State-run NTPC Limited's tender for 1.2 GW grid-connected solar projects has received an overwhelming response from bidders and has been oversubscribed, sources who spoke to PSU Watch on the condition of anonymity said on Friday. Among the bidders who have thrown their hats in the ring are ReNew Power, Tata Power, Azure Power, AMP Solar and O2 Power, said one of the two sources quoted above. Sources claimed that NTPC has received bids for a total of 1.7 GW of projects.

NTPC had floated the 1.2 GW ISTS-connected solar projects tender in Feb

NTPC Limited had floated the tender for 1.2 GW ISTS-connected (Inter State Transmission System) solar power projects in February this year. The tender had a ceiling tariff set at Rs 2.78/KWh. Because of the COVID-19 situation, the last date for the submission of bids for the projects was extended by NTPC from May 12 to May 28 and then to July 15. 

The tender document released by NTPC for the 1.2 GW ISTS-connected solar power projects said that the minimum capacity that bidders could develop was 50 MW and in multiples of 10 MW from there, up to a maximum quotable capacity of 600 MW. It also allowed bidders to develop projects at varied locations, however, specified that the capacity of each project should at least be 50 MW.

Single tariff clause

Another clause in the tender document asked bidders to quote only a single tariff for the entire capacity. The tender also stipulated that the financial closure of the project should be done within 12 months from the effective date of the PPA (Power Purchase Agreement). The capacity utilisation factor of the solar projects should not be less than 19 percent.

The backdrop

The news comes a day after NTPC Limited signed an MoU with NIIF (National Investment and Infrastructure Fund) to explore opportunities for investments in areas like renewable energy, power distribution, among other areas of mutual interest in India.

The present installed capacity of NTPC Limited is 62,110 MW (including 11,755 MW through JVs and subsidiaries), comprising of 70 NTPC stations (24 coal-based stations, 7 combined cycle gas and liquid fuel based stations, 2 hydro-based station, 1 wind-based station), 25 Joint Venture stations (9 coal-based and 4 gas based) and 12 renewable energy projects. NTPC targets to have nearly 30 GW of its overall power generation capacity from renewable energy sources by 2032.

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