NTPC to buy 1,000mw solar power by 2013

Written by fe Bureau | Kolkata | Updated: Jan 31 2010, 06:55am hrs
NTPC Vidyut Vapyar Nigam Ltd (NVVNL), a wholly owned subsidiary of NTPC Ltd, has decided to procure solar power reaching up to 1000 mw by 2013 and mix it with the unallocated thermal power before pushing to the grid.

Inderjit Kapoor, director commercial said that NTPC, after making a cost calculation, has found that the solar photovoltaic which it would have to buy at a rate of Rs 18.30 per unit and solar thermal at the rate of Rs 13.50 per unit if bundled with thermal energy will come down to Rs 5- 5.50 per unit.

In fact, the ministry of new and renewable energy (MNRE), in its new solar mission road map has converged the state tariffs with the central tariff for solar power. Across the country there would be uniform tariff for solar energy.

Kapoor said that while NTPC would enter into long-term power purchase agreement (PPA) with solar power developers, it would into long-term power selling agreements with those agencies, which would buy the bundled power.

The MNRE along with the Union power ministry will fix a criteria for selecting solar power developers, after which NVVNL will float an expression of interest, Kapoor said. He said: the EOI is expected to come by April 2010.

However, NTPCs plan of purchasing 1000mw depends much on the success of national solar mission, which has envisaged having 20,000 mw of solar power capacity by 2022. The MNRE has targeted a solar energy generation of 1300 mw in the first phase of the solar mission ending 2013 and NVVNL has been appointed the nodal agency for buying the entire generation.

Kapoor said NVVNL has already started writing to the state agencies in charge of solar power projects and the state regulatory commissions to apprise them of the solar projects coming up. Accordingly the company would chalk out its plan of procuring solar power.

However, NTPC has not decided on the formula of selling the 301 mw of solar power, which it would itself generate by 2014, Kapoor said.

NTPC, he said, was already in the process of developing 2000mw of merchant power capacity, of which 1000mw would come by September 2010.

NTPC will hit the capital market with its follow on public offer of 412,273,220 equity shares on February 3. The offer would further divest 5% of the governments 89.5% holding in the company. The floor price of the equity shares would be decided on February 1, Kapoor said.