NTPC wins 1.9 GW solar power project contract

“India’s largest integrated power generation company NTPC Limited won 1.9 GW in E-auction of CPSU Scheme-II, tranche-III of 5 GW tender. This capacity would be able to save more than 3 million tonnes of greenhouse gas carbon dioxide every year, NTPC said in a statement on Saturday.

This assumes significance as state-run NTPC Ltd has bid for record low solar tariffs in the recent past ₹1.99 per unit setting a new benchmark in this sector. State-run hydroelectric generator SJVN Limited has bagged the 1 GW solar power project contract in the bids called by IREDA. ₹2.45 per unit.

“NTPC was the single biggest capacity winner and with this capacity of 1.9 GW, NTPC now has over 6.3 GW of capacity through competitive bidding. This will pave the way for NTPC’s plan to have 60 GW of RE capacity by 2032.”

This comes in the backdrop of India’s plan to leverage state-run power sector firms to scale up its clean energy schemes, allowing central PSUs to bid for pre-determined capacity of renewable energy projects based on their balance. In-principle approval will be given for Sheet.

“The CPSU scheme will give a boost to Atmanirbhar Bharat as the projects involve the use of essential domestic materials,” the statement said.

Meanwhile, NTPC is preparing to list its clean energy units NTPC Renewable Energy Limited (NTPC REL) and NTPC Vidyut Vyapar Nigam Limited (NVVN). The company has set an ambitious target of 60 GW of renewable energy capacity by 2032 from the current 4.7 GW. It plans to invest ₹1 trillion between 2019 and 2024, to become 130 GW of electricity by 2032.

NTPC Group made a net profit of $1.85 billion in FY21. It has also set a target of 10% reduction in net energy intensity. The state-run company has an installed capacity of about 67 GW in 70 power projects, of which 18 GW is under construction.