- This is the first time that a total rejection by project developers has been noticed
- As a result, NTPC is forced it to extend the deadline till August 19
NTPC’s latest tender for solar projects for 1,200 MW found no bidder. This is the first time that a total rejection by project developers has been noticed since the firm started inviting bids for renewable energy. As a result, NTPC is forced it to extend the deadline, sources close to the development told Economic Times.
According to the terms of the tender, transmission connectivity for these projects is expected to be provided through substations at existing NTPC thermal power plant sites. States specified are Maharashtra, Madhya Pradesh, Chhattisgarh, and Gujarat.
A rare instance
Vinay Rustagi, managing director of renewable energy consultancy firm Bridge To India told the English Daily that projects would have to be located close to those power plants and acquiring land in these locations might be more expensive compared to more remote areas where solar projects are typically set up.
Since the cost of land is expected to be higher and radiation lower compared to those remote areas, the ceiling tariff, which was set at Rs 2.78 per unit, was perceived to be too low and hence no response was received, said Rustagi.
The deadline has been extended till August 19. Rustagi is of the opinion that this is the first time NTPC has received such poor response.