NTPC Trading Arm Invites EOI For RTC Green Power

By Saur News Bureau/ Updated On Fri, Sep 2nd, 2022

NTPC Vidyut Vyapar Nigam Limited, a power trading subsidiary of NTPC Limited, has invited expressions of interest from renewable energy developers for round the clock (RTC) power supply for the medium to long term. The latest tender indicates the pace at which demand for green RTC power is going up, as utilities look to ensure adequate supplies and grid balance with a higher share of renewable energy.

Bidders will be required to bid for a minimum supply parcel of 10 MW, with September 20 being the last day for submissions. Interestingly, bidders with existing plants, or projects that are scheduled to be completed by December 2023, besides those who have final approvals can also pitch in.

Like it’s previous large storage EOI, the focus clearly is on collecting enough information from generators to establish a workable mechanism for purchase and sourcing of renewable energy.

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As the largest power supplier to the grid, NTPC faces the highest risk of curtailments or penalties, based on its commitments to the various utilities across India. It is expected that a lot of these planned storage facilities will be up and running by 2024-25 and beyond to give it added flexibility.

Reports have also confirmed that the power major has received a strong response to its long announced plan of divesting a stake in its renewable energy arm, NTPC Green Energy Limited (NGEL). With options for either a minority stake sale to a strategic investor or an IPO even. With plans to raise $250 million or more for a minority stake, NTPC has received interest from pension funds as well as Energy majors and a global steel firm. It’s plans to achieve 60 GW of renewable energy capacity by 2032 are expected to pick up pace post 2024, when it will need to add upto 6-7 GW annually to achieve that target, based on its current pipeline and pace of capacity creation.

An unexpected power crisis along with market volatility in renewable solar costs has also given a new lease of life to parts of it’s existing thermal fleet, risking a lower focus on the renewable plans.