Energy giant NTPC inked power purchase agreement (PPA) with Andhra Pradesh power distribution companies for supply of power from the 250-MW solar power plant which is being developed under the first phase of the 1,000 MW ultra mega solar power project planned by the public sector major in Anantapur district of AP.
Under the deal, two AP discoms – APEPDCL and APSDCL – will procure the solar power at a fixed price of Rs 6.16 a unit for 25 years. "We have signed the PPA at competitive pricing. Also, we are geared up to complete the first phase of the mega solar power project in one year or so. We are also committed to complete the balance 750 MW in shortest possible time," I J Kapoor, Director (Commercial), NTPC, told media after signing of the PPA.
He further said the company would source exclusively from domestic vendors for the first phase whereas it would undertake global competitive bidding process for the remaining three phases. Replying to a query, he said the public sector major would set up solar power generation capacity of 3,000 MW during the current financial year. At present, it operates an installed capacity of 110 MW in this space.
In September 2014, NTPC signed an MoU with Andhra Pradesh government for establishing the ultra mega solar project. Considered as the world's largest solar power project at a single location by a single developer, the project is expected to spread over 5,000 acres of land. Already, AP government identified the required land for the project and handed over 1,250 acres for the first phase.
Speaking on the occasion, Ajay Jain, Secretary, Department of Energy, AP, said the coastal State had put plans in place to develop 5,000 MW solar and 4,000 MW wind power over the next four years. At present, AP has installed capacity of 125 MW solar and over 1,000 MW of wind power."Most of the new wind and solar capacity will come up in Rayalaseema which will become renewable energy hub," he explained.