NTPC plans to switch to a 2-part tender process for solar power projects

The move was part of a plan to have such projects with no advance PPA with any state or discom

NTPC, the country's largest thermal power producer, will switch to a two-part tender process for solar power projects.
 
Senior executives said this would bring down the cost; the aim is to procure power panels in bulk form separately, on own cost metrics. These panels form 80 per cent of the total project cost in a solar power plant. The 'Balance of Systems' tender for construction of the project would be awarded separately, to engineering, procurement and construction (EPC) companies.
 
Currently, it awards all components of the project together, where the EPC player takes care of all aspects from procurement of equipment to construction.

 

An NTPC executive says they might at some time explore multi-part tendering, where components are awarded to different companies and assembled.
 
The company said its two-part move was part of a plan to have solar power projects with no advance Power Purchase Agreement (PPA) with any state or power distribution company (discom). One such project has been set up, of 90 Mw, at Anta (Rajasthan).
 
"We are planning to set up at least 1,000 Mw of projects which will have no PPA. These are also the ones for which we will issue a two-part tender and procure modules ourselves," said a senior  executive.

 
States would buy, since solar power is the cheapest energy source, is the thinking. "Power from these plants could be sold either through power exchanges or through any other platform," said the executive.
 
As part of a plan to set up 30,000 Mw of solar projects in the next five years, NTPC is looking to increase the share of its own renewable energy (RE) projects. "We want to shift away from procuring RE from private companies and then selling to state governments. The margin is very low," said the executive.
 
NTPC has commissioned around 3,600 Mw of projects from where it procures power, of which 3,000 Mw is under implementation.

 
The plan next year is to bid out only 1,200 Mw of projects under this model, unless specifically asked by the government.
 
Focus in the next financial year will be commissioning 500 Mw of NTPC’s own solar power generation capacity. The power generator is aiming to increase the share of RE projects in its portfolio, as thermal would see a "downslide", said company executives.
 
It now has a little over 900 Mw of commissioned RE projects, of which solar is 870 Mw and wind power is 50 M2. The total installed capacity of the company is 57,356 Mw.