NTPC Invites Bid To Acquire 1 GW Solar Projects Operating Using Local Equipment To Expand Renewable Portfolio

In a major acquisition spree, country's largest power producer NTPC has floated a tender to acquire 1 GW operational solar projects, which entails an investment of around Rs 5,000 crore, reports Hindu Business Line.

In a request for proposal (RFP) issued on Friday (24 July), NTPC has invited selling bids from promoters, lenders, financial intermediaries power generation companies and independent power producers for offering solar-based assets located in India.

As per one LiveMint report, the other criteria in RFP include a tariff of at least Rs 5 per unit approved by the respective state or Central Regulatory Commission and an operational installed capacity of at least 50 MW at a single location.

“The company is also contemplating to increase its renewable generation capacity through acquisition of Operation Solar based Power Assets located in India for a minimum capacity of 1000 MW," the RFP said.

This is the first time that the state-owned power generator has evinced interest in acquiring operational solar projects. Earlier, the company had invited bids to procure solar power and set up projects.

The acquisition plan is part of NTPC goal to add 10GW of solar generation capacity by 2022, with an investment of around Rs 50,000 crore. Currently, it has a 2298 MW renewable energy projects under construction.

To support government's Atmanirbhar Bharat mission and development of domestic capacities, NTPC has decided to acquire only such plants that are being operated using local equipment and not largely based on imported solar cells and modules.

The last date for the submission of techno commercial bids is September 22 and the financial bid or price bid opening would be intimated later after opening the techno commercial bids.

“The offered Asset(s) can be either an Special Purpose Vehicle (SPV) wherein the applicant intends to offer their 100% equity for sale to NTPC or it can be a standalone Asset(s) which the applicant intends to offer for possible acquisition by NTPC," the RFP said.

The NTPC's acquisition plan is expected to be lapped up by several solar power generators looking to exit the sector after facing regulatory hurdles and difficulties in pricing power on renewed terms that some states are now pushing.

Currently, NTPC has total installed capacity of 62,910 MW, and it plans to be a 130 GW-company by 2032. By this time, the state-run power giant aims to achieve a minimum of 32 GW capacity through RE sources constituting nearly 25 per cent of its overall power generation capacity.

With IANS Inputs