The National Thermal Power Corporation (NTPC) is going to procure 1,000 MW of renewable energy on a short-term basis. NTPC has issued a tender to procure power from the existing solar photovoltaic (PV) power projects and wind power projects of cumulative capacity up to 1,000 MW. Selection of power generators will be carried out through reverse bidding.
The minimum offered capacity from a single renewable energy project will be 50 MW and in multiples of 10 MW thereafter. A bidder can offer power from multiple solar and wind power projects. A single bidder must quote one tariff for all the projects that he/she intends to sell power from. A single bidder can choose to supply the entire capacity that the NTPC is looking to procure, 1,000 MW.
The bid-submission deadline is December 20, 2018. The solar PV or wind projects can be located anywhere in India. Bidders must indicate the location of the projects at the tie of bidding. Renewable energy projects having interstate transmission system (ISTS) connectivity will be eligible for participating in this tender.
The entire cost of transmission, including the cost of construction of line, wheeling charges, losses will be borne by the power generator and will not be reimbursed by NTPC or met by the state transmission utility (STU)/central transmission utility (CTU)/ distribution company (DISCOM).
The responsibility of getting medium term open access (MTOA) to the transmission system owned by the CTU will lie with NTPC and will be at the cost of NTPC.
The bidders will have to submit bids quoting a fixed levelized tariff for entire power purchase agreement (PPA) duration of one year. This will be the “First Round Tariff Bid” of the bidder after which the shortlisted bidders will be invited for the reverse auction. The ceiling limit for “First Round Tariff Bid” will be ₹2.67 (~$0.037)/kWh. Any bid with “First Round Tariff Bid” higher than the ceiling limit of ₹2.67/kWh will be rejected.
According to NTPC, the PPA will be signed between NTPC and successful bidders. The PPA will be executed within 120 days of the date of issue of Letter of Intent. Separate PPA will be executed between NTPC and power generator for each project.
The PPA will be for a period of one year from the scheduled date of commencement of supply of power. The PPA will be extendable up to six months if mutually agreed by NTPC and power generator. The PPA tariff will remain fixed for entire duration of PPA.
A few weeks ago, NTPC tendered 1,200 MW of interstate transmission system (ISTS)-connected solar photovoltaic (PV) projects to be developed in the western region of the country. The bid-submission deadline is December 19, 2018. Before that, it invited bids for the development of wind-solar hybrid power project at NTPC, located in Kudgi, Karnataka.
Similarly, back in December 2017, Maharashtra State Electricity Distribution Company Limited (MSEDCL) had won the approval to procure wind, solar, and bagasse‑based cogeneration power at a rate discovered through a tariff‑based competitive bidding process. The Maharashtra Electricity Regulatory Commission (MERC) approved MSEDCL’s petition so that the agency could effectively procure the power it needs to meet its Renewable Purchase Obligation (RPO). Rates could be discovered for the procurement of power on a short-term, medium-term, and long-term basis.
Meanwhile, NTPC and project developer ACME Solar have been embroiled in a legal battle pertaining to a recent solar auction for the development of 2 GW of solar projects.
Saumy is a senior staff reporter with MercomIndia.com covering business and energy news since 2016. Prior to Mercom, Saumy was a copy editor at Thomson Reuters. Saumy earned his Bachelors Degree in Journalism & Mass Communication from the Manipal Institute of Communication at Manipal University. More articles from Saumy Prateek.