O2 Power, Azure Power, Tata Power, and Amp Energy have together won 1,170 MW of projects in NTPC Limited’s auction for 1.2 GW of the interstate transmission system (ISTS) connected solar projects.

According to Mercom’s sources, O2 Power, Azure Power, and Tata Power were awarded 400 MW, 300 MW, and 370 MW of projects, respectively, at a tariff of ₹2.43 (~$0.0325)/kWh. Amp Energy secured 100 MW of projects at ₹2.44 (~$0.0327)/kWh. ReNew Power also placed bids for 300 MW of projects but was not awarded any capacity.

Mercom earlier reported that the tender was oversubscribed, but due to some bids not making it through the technical qualifications, only 80% of the received bids were auctioned by NTPC.

Background: 

In February 2020, NTPC floated an invitation for bids for the selection of solar power developers to set up 1.2 GW of ISTS-connected solar projects. The tender was announced with a ceiling tariff set at ₹2.78 (~$0.037)/kWh.

In June, NTPC extended the bid submission deadline to July 15, 2020, from the earlier deadline of May 28, 2020. In April, the company had extended the deadline to May 28, 2020, from May 12, 2020, previously.

According to the tender documents issued earlier, the minimum capacity that a bidder could develop was 50 MW and in multiples of 10 MW from there, up to a maximum quotable capacity of 600 MW. Bidders were allowed to develop projects at multiple locations as long as each project was at least 50 MW.

However, bidders could only quote a single tariff for the entire capacity. The developer would be required to achieve financial closure for the project within 12 months from the effective date of PPA. The tender also stated that the capacity utilization factor (CUF) of the solar projects selected must not be less than 19%.

Earlier, Mercom reported that 1.4 GWs of solar projects that were awarded for NTPC’s 2 GW solar tender were canceled due to regulatory delays.

According to Mercom’s India Solar Tracker, NTPC has 875 MW of large-scale solar projects in operation, with about 2.3 GW of capacity currently under development.