NTPC Renewable Energy inks PPA with GUVNL

On Thursday, NTPC Renewable Energy, a subsidiary of the state-owned NTPC, announced that it has signed a power purchase contract with Gujarat Urja Vikas Nigam Ltd. (GUVNL) to sell electricity produced by its 150 MW solar project.

According to the venture, the project would sell power at a rate of Rs. 2.20 (US$ 0.030) per kWh.

The company's total capacity under TBCB (tariff-based competitive bidding) tenders now stands at 1.4 GW, thanks to this successful bid. The Gujarat government has also given the company land in the Rann of Kutch to construct a 4,750 MW solar park.

NTPC Renewable Energy is seven month-old 100% subsidiary of the state-owned NTPC, which was established with the goal of developing renewable energy projects. It is currently developing 6 GW of solar capacity in the region.

The subsidiary's highest domestic credit rating, assigned by India Ratings, reflects the parent company's significant support.

Banks are currently approving Rs. 2,100 crore (US$ 284.47 million) in long-term loans for the company's under-construction projects.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.