The step will insulate the clean energy project developers from haggling with State government-controlled Discoms that are notorious for delaying payments and renegotiating signed contracts
December 27, 2019. By News Bureau
NTPC Ltd has announced that it is willing to completely shift away from the business of procuring renewable energy and then selling it at a small margin to State governments.
NTPC now wants to focus on increasing its renewable energy generation capacity and leave the renewable power procurement responsibility to the Solar Energy Corporation of India, according to the officials. NTPC and SECI had independently called for bids from renewable energy project developers to build confidence for achieving the clean energy goals of the centre. These two Central government agencies will sell it to a power distribution company at a margin of around 6-7 paisa per unit by procuring power from the developers.
The step will insulate the clean energy project developers from haggling with State government-controlled Discoms that are notorious for delaying payments and renegotiating signed contracts.
NTPC has commissioned around 3,600 MW of projects from where it procures power and another 3,000 MW if such projects are under implementation, according to the officials.
The plan next year is to bid out just 1,200 MW of projects under this model, unless specifically asked by the government.
A top company official said, “The Company’s focus in the next financial year will be commissioning 500 MW of NTPC’s own solar power generation capacity. The power generator wants to focus on having a larger renewable energy portfolio and eyes a clean energy generation capacity as large as its thermal portfolio sometime in the future.”
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