NTPC to procure 1000 MW solar power in India by 2013

NTPC Vidyut Vapyar Nigam Ltd (NVVNL), a wholly-owned trading arm of NTPC and the national nodal agency, has decided to procure solar power up to 1,000 MW by 2013.

NTPC’s director (commercial) Inderjit Kapoor said NVVN will bundle the power provided by the power ministry from the unallocated quota of NTPC stations.

NTPC’s plan of purchasing 1,000 MW depended much on the success of national solar mission, which had envisaged 20,000 MW of solar power by 2022.

The MNRE has targeted 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.

The NVVN is the government designated nodal agency for reaching power purchase agreements with solar power developers who will be setting up solar projects within the next three years (up to March 2013).

Now the per unit price of solar thermal power is Rs 13.50 and that of solar photovoltaic power is Rs 18.25. But when this is bundled with cheap thermal power, the rate will come down to Rs 5.50.

The bundled power will be sold at a rate fixed as per Central Electricity Regulatory Commission (CERC) regulations for a period of 25 years.

The government will review significant price movements in the market rate. The NVVN will supply the bundled power to state distribution utilities, who will be entitled to use part of the bundled power to meet their Renewable Purchase Obligation.

NTPC, which plans to set up merchant power capacity of about 6,000 MW by 2017, will commission its first 500 MW plant at Korba in Chhattisgarh in September. The second such 500 MW plant will be commissioned at Farakka in Murhsidabad later in the 2010-11 fiscal. The NTPC now has an installed capacity of 30,644 MW, while 17,930 MW is under construction.

Besides, 33,000 MW is under various stages of preparation. This comprises 9,900 MW for which the bidding process will be over by the end of the 2009-10 fiscal, 18,000 MW is under feasibility studies and the remaining 5,100 MW is in the approval stage.

The firm has set up an ambitious target of increasing its total capacity to 75,000 MW by 2017.

The company has decided to tap the capital market with a further public offer (FPO) of 412,273,220 equity shares of Rs 10 face value each, in its bid to divest five percent of the government’s stake.