Mumbai: NTPC Ltd on Friday said it has entered into a power-purchase agreement (PPA) with Andhra Pradesh distribution utilities for the first phase of its 1,000 MW solar power project being set up in the state.
Andhra Pradesh Eastern Power Distribution Co. Ltd (APEPDCL) and Andhra Pradesh Southern Power Distribution Co. Ltd (APSPDCL) have agreed to procure 250 MW of the power generated from the planned solar power project.
The power is to be procured at Rs6.16 per unit for 25 years.
NTPC expects the power generation cost to be lower for the remaining 750 MW capacity of the plant. “The power generation cost may further come down with regard to the remaining 750 MW capacity as that portion of the project would be undertaken through global bidding process, unlike in the first phase where only the domestic venders were involved,” said I.J. Kapoor, director (commercial) with NTPC, said in the statement.
In September, NTPC had signed an agreement with Andhra Pradesh for the development of a 1,000 MW solar power project. The engineering, procurement and construction contract for the first phase of this plant is to be awarded shortly and expected to be on stream in 18 months.
Source: Mint; 25 April 2015