India’s largest power generation company, NTPC Limited, has floated two tenders to auction 2.75 gigawatts of solar power capacity.
Restarting the tendering process for solar power projects after a bit of lull, NTPC announced a tender for 750 megawatts at Ananthapuram solar power park in the southern state of Andhra Pradesh. The current deadline for bid submission by prospective project developers is 12 April 2018. Developers can bid for a minimum capacity of 250 megawatts and maximum capacity of 750 megawatts.
The solar power park is expected to have a capacity of 2 gigawatts once fully commissioned. The park will be divided into two different locations within the Ananthapuram district. One part of the park will host 1.5 gigawatts of capacity which the other wull have 500 megawatts of capacity.
We had reported earlier that 250 megawatts of capacity is already operational at the solar park while 750 megawatts of capacity is expected to be commissioned by the end of this month. While no recent updates have been filed about the status of capacity addition at the park, developers can be expected to meet the month-end deadline.
NTPC had auctioned some projects in the recently commissioned 600 megawatts of capacity at one of India’s largest solar power parks — Pavagada.
The second tender offering 2 gigawatts floated by NTPC gives the choice of project location to the project developers. These projects can be set up at any location in India. The minimum bid under this tender is 50 megawatts, but a developer may bid for the entire capacity on offer.
NTPC will enter power purchase agreements with the projects, either directly or through its trading arm. If the power is purchased by distribution companies the projects will not incur any additional transmission costs or charges as per government laws.
Bids for the Ananthapuram solar power park are expected to be lower compared to the national-level tender. This is because land for the projects has already been acquired and earmarked at the solar park. In the national-level tender the project developers will have to scout for project sites or use from their own land bank. However, the security of signing PPAs with a government-owned company like NTPC would boost confidence among developers.