NTPC, SJVN, NHPC, NLC, and IRCON Win IREDA’s 5 GW CPSU Solar Auction
The permissible VGF limit for the tender was ₹5.5 million/MW
NTPC Limited, SJVN, NHPC, NLC India, and IRCON International were declared winners in the Indian Renewable Energy Development Agency’s (IREDA) auction for 5 GW of grid-connected solar projects (Tranche-III) under the Central Public Sector Undertaking (CPSU) Program (Phase-II).
NTPC won the largest capacity of 1,990 MW quoting a viability gap funding (VGF) amount of ₹4.495 million (~$61,019)/MW.
SJVN won a capacity of 1,000 MW quoting ₹4.472 million (~$60,707)/MW as VGF. NHPC also won a capacity of 1,000 MW with a VGF amount of ₹4.49 million (~$60,951)/MW.
NLC India won 510 MW by quoting ₹4.474 million (~$60,747)/MW and Ircon International won 500 MW quoting ₹4.494 million (~$61,005)/MW.
The permissible VGF limit for the tender was ₹5.5 million (~$74,525)/MW, and the tariff was capped at ₹2.45 (~$0.033)/kWh.
The tender had received a strong response from the bidders and was oversubscribed by 1,960 MW.
In May this year, IREDA had extended the bid submission date to May 31, 2021. IREDA had also issued amendments to the request for selection, and the ceiling tariff for the projects was increased to ₹2.45 (~$0.033)/kWh from ₹2.20 (~$0.030)/kWh.
The tender was initially floated in January this year.
In March 2019, the President of India had accorded approval to implement Phase-II of the CPSU program to set up 12 GW of grid-connected projects for self-use or use by government entities.
The maximum time allowed for commissioning the project is 36 months from the date of the issuance of the Letter of Award (LoA).
According to IREDA, 50% 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 LoA.
Government entities who want to use renewable power as auxiliary power for power generation projects can do so after informing the Central Electricity Regulatory Commission, State Electricity Regulatory Commissions, or Joint Electricity Regulatory Commission.
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.
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