NVVN to sign PPAs, looks for biggest discounts from set rate.
The next stage of inviting bids for 650 Mw of solar power generation will be taken in the third week of this month by state-run NTPC Vyapar Vidyut Nigam (NVVN), the designated nodal agency under the National Solar Mission.
NVVN is to invite the Request for Proposal (RFP) from 422 applicants to tie up the 650 Mw, at a rate fixed by the Central Electricity Regulatory Commission (CERC) for the first three years. The applicants include Tata Power, Tata International, Reliance Industries, Reliance Infrastructure, Shree Cement, OPG Energy, Surya Power and Suryachakra Power.
NVVN had invited the earlier Request for Qualification (RFQ) for 150 Mw of solar photo-voltaic (PV) projects, with a capacity of 5 Mw each, and for 500 Mw of solar thermal projects, with a minimum capacity of 5 Mw and a maximum of 100 Mw each.
A K Goel, CEO, told Business Standard: “NVVN will award contracts for those applicants who will provide the maximum discount on the CERC rate. NVVN plans to enter into the power purchase agreement (PPA) with selected parties by the end of January.” The signing of PPAs would pave way for developers of the projects to achieve financial closure, he said. He said NVVN had applications for developing 1,740 Mw of solar PV projects, which far exceeds the target of 150 Mw for the first batch of Phase-I. In case of solar thermal, against the 500 Mw target, applications have come for 1,000 Mw.
Power analyst D Radhakrishna said there were concerns with this level of enthusiasm. “NVVN has asked for indigenous technology, which is not available, and project execution in only one year from the date of financial closure, which also seems difficult, as the land requirement for solar power is much more than the conventional power.”
Radhakrishna said the issue of grid connectivity and metering systems needs to be addressed. “Solar power is new and the technology is very costly. Can India accommodate a costly power component when the rates are below Rs 4?” he asked.
