NTPC inks power purchase pact with Gujarat for 150 MW solar power

NTPC Renewable is currently building 6,000 MW solar capacity across the country, including the 1,400 MW awarded to it under various competitive biddings where it was the lowest bidder.

Electricity generator NTPC said on Thursday that its newly formed subsidiary NTPC Renewable Energy has signed a power purchase agreement with state-run power utility Gujarat Urja Vikas Nigam (GUVNL) to sell power from its upcoming 150 mega-watt (MW) solar project in the state at Rs 2.20/unit.

NTPC Renewable Energy was created in October, 2020 to focus on the power behemoth’s green energy business as NTPC plans to increase the share of renewable energy in its generation portfolio.

NTPC Renewable is currently building 6,000 MW solar capacity across the country, including the 1,400 MW awarded to it under various competitive biddings where it was the lowest bidder. The company has also been allocated land in Kutch by the Gujarat government for developing a solar park with a capacity of 4,750 MW. It is also in the process of receiving Rs 2,100 crore of long-term loans from banks for its under-construction projects.

Currently, the total installed capacity of NTPC stands at 65,810 MW, comprising 1,318 MW of solar and wind energy-based plants. With rising environmental concerns and falling tariffs of renewable energy, the largest thermal power producer in the country has decided to diversify its generation portfolio. By 2032, it plans to have a total power production capacity of 1,30,000 MW and 30% of this would be non-thermal energy based.

In another 12 years, NTPC wants to have a base of 32,000 MW renewables, 5,000 MW hydro and another 2,000 MW of nuclear power plants.