Public-sector NTPC Limited and Andhra Pradesh power utilities on Friday signed a power purchase agreement (PPA) for procurement of power to be generated from the 250-Mw solar plant, first phase of the 1,000-Mw ultra solar power project being set up by NTPC in the economically backward Anantapur district.
The state discoms have fixed the procurement price of Rs 6.14 per unit for a 25-year PPA period.
This price is substantially lower compared with the Rs 6.40 per unit determined during the recently concluded bidding for the 619-Mw installed capacity involving several small and medium size developers in the state.
The power generation cost may further come down with regard to the remaining 750 Mw capacity as that portion of the project would be undertaken through the global bidding process unlike in the first phase where only domestic vendors were involved, according to I J Kapoor, director (commercial) of NTPC.
The land required for the first phase project was already made available to the company by the state government. It is expected to come on stream in 18 months.
In February, the NTPC board had approved a commitment given to the Government of India to develop 10,000 Mw solar power capacity in the next five years. The company is planning to build 3,000 Mw solar capacity in the current financial year as compared with the existing installed capacity of 110 Mw under the solar sector, Kapoor said.
In September last year, NTPC had signed an MoU with the AP government for the development of 1,000 Mw solar project, which was dubbed as the world’s largest solar power project at a single location by a single developer, in the state.
A total of 5,400 acres of land has been identified for the project, most of which has already been acquired, according to government officials.
AP has drawn ambitious plans to develop 5,000 Mw solar power and 3,000 Mw wind power in the next five years, according to Ajay Jain, secretary, energy.
As the country’s largest power utility with an installed capacity of 44,598 Mw comprising predominantly coal-fired thermal power capacity, NTPC has been trying to bring a judicious mix renewable energy under its portfolio.