NTPC Vidyut Vyapar Nigam expects to start buying power generated from solar energy by October

NTPC Vidyut Vyapar Nigam (NVVN) expects to start buying power generated from solar energy by October. “We expect to start procuring solar power generated from the projects that would be grid connected by October,” Mr Anil Agrawal, Chief Executive Officer (CEO), NVVN, said.

 The first batch of solar power is expected to come from the existing photovoltaic (PV) developers that have shifted their projects (migrant projects) under the Jawaharlal Nehru National Solar Mission (JNNSM), Mr Agrawal told Business Line.

 Under the migration scheme, 16 solar power developers (both thermal and PV), have inked power purchase agreements (PPAs) with NVVN in October 2010 for producing 84 MW of solar power.

 Of this, solar power produced from PV projects is expected to be 54 MW and thermal 30 MW, he said, adding that “the power can also come earlier than October.”

Migration

 Considering that some of the solar power projects were at various stages of development, it was felt that these projects may be considered for ‘migration' from their respective arrangements to the ones envisaged under the JNNSM, which was launched in January 2010, he said. This was meant to give a kick-start to the Mission, he added.

Of these, 16 migrant projects (both thermal and PV) 11 are in Rajasthan, two in Punjab, and three in Maharashtra.

 The trading arm of NTPC has been designated the nodal agency for sale and purchase of grid connected solar power under Phase-1 of the Mission. Besides, the PPAs signed with the existing players, NVVN, has this month also signed pacts with new developers.

Grid connectivity

 From the 36 new projects that are expected to generate 615 MW of solar power, grid connectivity is expected by January 2012. “Generation from new PV projects is expected from January 2012 and thermal by April 2013,” Mr Agrawal said.

 PPA for one 5 MW new project is yet to be signed.

 JNNSM envisages the implementation of the solar programme including utility grid solar power in three phases — first phase up to 2013 (1,100 MW), second phase up to 2017 (4,000 MW), and third phase up to 2022 (20,000 MW).

 The companies offering the best discount on Central Electricity Regulatory Commission's (CERC) notified tariff were selected. The CERC rates for 2010-11 are Rs 17.91 (normal rate of depreciation)/ Rs 14.95 (accelerated rate of depreciation) a unit for PV and Rs 15.31 (normal rate of depreciation)/ Rs 12.85 a unit (accelerated rate of depreciation) for solar-thermal. The average discount offered on CERC tariff for PV was Rs 5.75 a unit and Rs 3.82 a unit for thermal.