NHPC Awards LoA for 400 MW ISTS-Connected Solar Projects

NHPC has issued a letter of award (LoA) to a Solar Power Developer (SPD) for ISTS-connected solar projects for balance 400 MW capacity in its 2 GW tender

NHPC, India’s premier hydropower company which has diversified its portfolio to include solar power business has announced that it has issued a letter of award (LoA) to a Solar Power Developer (SPD) for interstate transmission system (ISTS) grid-connected solar photovoltaic (PV) projects for balance 400 MW installed capacity out of 2000 MW that was tendered by the company.

Out of 2000 MW capacity, NHPC revealed that it has already issued LoAs for 1600 MW capacity during June 2020.

Previously, NHPC had successfully conducted the e-reverse Auction for the 2000 MW ISTS-connected solar PV projects tender to be set up anywhere in India. As part of the LoA, NHPC shall purchase the power generated from the proposed ISTS-connected project at tariffs of Rs 2.55/unit and 2.56/unit.

In April, we had reported that five firms had been declared as winners in the auctions for the 2 GW interstate transmission system (ISTS) connected solar projects tender. SoftBank-backed SB Energy, Axis Energy Ventures India, O2 Power, EDEN Renewables, and Avaada Energy are the five winners.

SB Energy, Axis Energy EDEN and O2 Power all quoted the identical L1 tariff of Rs 2.55/kWh in the auction, with each being awarded the full quoted capacities they had submitted proposals for under the tender. SB Energy won rights to develop 600 MW solar projects, Axis Energy won 400 MW capacity, EDEN Renewables won 300 MW and O2 Power won 380 MW capacity.

Avaada Energy which quoted a tariff of Rs 2.56/kWh was awarded 320 MW capacity. The firm had submitted a proposal for 600 MW capacity, however, based on the bucket filling method, it was only awarded 320 MW capacity. The tender had received technical bid submission worth 3.78 GW after nine developers including ReNew Power, Tata Power and AMP Solar, had submitted bids.

More recently, the firm had announced that its board had approved the proposal to foray into the solar energy business. “It is to inform that board of directors of NHPC Ltd in its meeting held today…has considered and approved the proposal regarding diversification of business of the company by the development of solar power projects as intermediary procurer through solar power developers,” a company statement read.