NTPC secures 1.9GW solar power contract in IREDA auction
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NTPC secures 1.9GW solar power contract in IREDA auction

27 Sep 2021 (Last Updated September 27th, 2021 12:19)

The power contract will help NTPC reach its 60GW renewable capacity target by 2032.

Indian energy conglomerate NTPC has won a 1.9GW solar power project contract in an auction organised by Indian Renewable Energy Development Agency (IREDA).

NTPC won the capacity under Phase II of the Central Public Sector Undertaking (CPSU) Scheme, the third tranche of a 5GW tender.

The CPSU Scheme Phase II aims to establish grid-connected solar photovoltaic power projects, with 12GW of combined capacity, by government producers through viability gap funding support.

NTPC is understood to have been the single largest capacity winner in the e-auction.

This contract brings the total amount of capacity won by the company through competitive biddings processes to more than 6.3GW.

It will also help the company to reach its goal of implementing 60GW of renewable energy capacity by 2032.

In addition, the scheme is expected to promote the Atmanirbhar Bharat (Self-Reliant India) scheme as the projects must use materials and components produced domestically.

Last May, NTPC signed a memorandum of understanding (MoU) with Oil and Natural Gas Corporation (ONGC), an Indian multinational crude oil and gas company, for the establishment of a joint venture company for the renewable energy business.

Under the MoU, the two companies agreed to form a joint venture company to expedite their footprint in the country’s renewable energy business.

In another development, Indian state-run hydroelectric power generation company Satluj Jal Vidyut Nigam (SJVN) has won a 1,000MW grid-connected solar project worth Rs55bn ($746m) in the auction organised by IREDA.

The project is expected to generate 2.4 billion units in its first year and was won by the company through an open competitive bidding process.

SJVN chairman Nand Lal Sharma said that the latest allotment brings the company’s total amount of solar capacity in development to 1,345MW.

Power generated by the project will be strictly for self-use or for use by government entities, either directly or through distribution companies.