NTPC along with four others win IREDA’s 5 GW CPSU Solar Auction

State run NTPC is the largest winner of 1.9 gigawatts (GW) in the Indian Renewable Energy Development Agency’s (IREDA) auction for 5 gigawatts (GW) of grid-connected solar projects (Tranche-III) under the Central Public Sector Undertaking (CPSU) Scheme-II tender. The other winners include SJVN, NHPC, NLC India, and IRCON International.

The tender which was initially floated in January this year, had received a strong response from the bidders and was oversubscribed by 1,960 MW.

The CPSU Scheme Phase-II envisages setting up 12,000 MW grid-connected solar photovoltaic power projects by the government producers with Viability Gap Funding (VGF) support.

NTPC won the largest capacity of 1.9 gigawatts (GW)of quoting a VGF amount of Rs 44.95 lakh per megawatt (MW).

SJVN won a capacity of 1,000 MW quoting Rs 44.72 lakh per MW as VGF. NHPC also won a capacity of 1,000 MW with a VGF amount of Rs44.9 lakh per MW.

NLC India won 510 MW by quoting Rs 44.74 lakh per MW and Ircon International won 500 MW quoting Rs 44.94 lakh per MW.

The permissible VGF limit for the tender was Rs 55 lakh per MW, and the tariff was capped at Rs 2.45 per kilowatt-hour (kWh).

According to IREDA, 50 percent of the VGF would be released once the contract is awarded to the EPC contractor by the developer. The developer must sign the EPC agreement within 12 months from the issuance of the letter of award.

Earlier this year, the Ministry of New and Renewable Energy issued amendments for setting up 12 GW of solar projects with VGF by CPSUs for self-use or use by government entities. For NTPC this win means that it has now over 6.3 GW capacity won through competitive biddings. This is expected to pave the way for NTPC’s plan of 60 GW RE (renewable energy) capacity by 2032, a company statement said.  

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