NGEL Invites Bids For Sale Of 100,000 Carbon Credits From RE Project

NGEL Opens Bids For Sale Of 100,000 Carbon Credits From RE Project

NTPC Green Energy Limited, a subsidiary of NTPC, has opened bids through a tendering process followed by a forward auction for the “sale of 100,000 carbon credits (VERs) from RE Projects (Wind and Solar) of NTPC Green Energy Limited registered under the VCS (Verified Carbon Standard) Program.” 

The tender document states, “The sale of carbon credits is open to all credible domestic companies registered and operating under the prevalent laws of the country.” The tender is open to organizations that wish to purchase the carbon credits generated by VCS-registered projects of NGEL at a price discovered through domestic competitive bidding.

The brief scope of work for the subject package includes the following:
NTPC Green Energy Limited (NGEL) intends, through this tender, to invite potential buyers to purchase 100,000 VERs. The tender provides details of the generated VERs from VCS-registered project activity offered for sale from the Vintage Year (VCS-registered project of 610 MW).

The tender lays down special conditions for the sale of carbon credits, which mandate the following:
a. As per the existing rules of VERRA.
b. The bidder(s) shall offer a lump sum price for 100,000 carbon credits exclusive of the issuance fee to be paid to the VERRA/VCS Board and other charges, if any. All applicable taxes involved in the transaction shall be borne by the bidder.

The last date for bid submission is – 6th September  2024, and the tender amount is  Rs. 900.

The offer is one of the largest if not the THE largest we have seen in 2024, and will be a great opportunity to track the perceived value of these credits. Modalities for trading in carbon credits are progressing apace in India, and some sort of trading on a platform is expected to start by 2025. Even though carbon credits earned through renewable energy projects may be relatively rarer.