NTPC Auction: Second lowest solar charges of 2.43 / unit discovered

The country aims to increase the capacity of existing renewable power generation plants from 87.7 GW to 175 GW by the end of 2022.


The latest reverse auction has discovered a rate of Rs 2.43 per unit for 1,170 megawatts (MW) of state-run NTPC-powered solar capacity. This is the second-lowest tariff for solar power so far and comes on the heels of a record low bid of 2.36 / unit received at the auction for 2,000 MW of solar capacity held on 30 June. The lowest solar tariff ever found was Rs 2.44. / Unit in July 2018 auction.


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According to sources, O2 Power - jointly supported by Sweden's EQT Infrastructure and Singapore-based Temasek - cited the lowest tariff for the construction of the 400 MW solar project.


Azure Power (the Indian firm listed on the New York Stock Exchange) and Tata Power matched the lowest tariffs and were awarded 300 MW and 370 MW respectively. The Indian arm of Canada-based Empee Energy Green bid 2.44 / unit for 100 MW capacity.


As with the final two major solar tenders auctioned by Solar Energy Corporation (SECI) in February, the winning developers are mostly backed with foreign capital. The renewable energy industry is one of the major FDI earners since FY15 with the region attracting foreign capital of $ 4.8 billion by the end of 2019.


NTPC will be the aggregator and supply power to the states from solar plants owned by these developers after signing power purchase agreements.


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The country aims to increase the capacity of existing renewable power generation plants from 87.7 GW to 175 GW by the end of 2022. Around 35 GW is under various stages of implementation and 32 GW is under various stages of bidding.


If 45.7 GW of nuclear capacity and 6.8 GW of nuclear capacity are included, the target will only be achieved by 2022 under the Paris Climate Change Agreement with 40% power generation capacity installed from non-fossil fuel sources.


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