NTPC invites EoIs from discoms to purchase electricity

29 Jul 2021 CW Team

The National Thermal Power Corporation (NTPC) has invited expressions of interest (EoIs) from electricity distribution companies (discoms) and industries to acquire electricity from its spare generation capacity.

NTPC provides power directly to discoms, often under long-term power purchase agreements (PPAs). Its company's first time proposing to sell power to corporates and industrial users based on an open-access.

At present, every 52,000 megawatts (MW) working capacity and 15,000 MW of under-construction coal-based stations of NTPC are bound with certain power off-take agreements.

Before the January 2011 deadline in the three months for shifting to a competitive bidding administration, the company entered PPAs for 40,840 MW of its capacities, based on a cost-plus with 37 state-run discoms.

The development follows the Central Electricity Regulatory Commission permitting one of the discoms of Delhi, BSES, to address the power ministry to deallocate 621 MW of electricity supply from the Dadri-I generating station of NTPC.

The government has directed that discoms stop purchasing power from plants older than 25 years, and the Dadri-1 unit is one of them.

Recently, Rajasthan has also decided to stop acquiring electricity from the 410 MW Anta gas plant of NTPC, which is over 25 years old.

NTPC plans to have a 60,000-MW green power generation base by 2032 compared to the 1,400 MW currently and the coming renewables capacity, which is not bound with PPAs.

NTPC is even giving power purchase portfolio management services for corporate and industrial entities, showing its plan to expand the emerging businesses and markets over the power value chain from being a traditional pure-play electricity manufacturer.

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Also read: NTPC Invites bids for 500 MW grid-connected solar projects

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NTPC invites EoIs from discoms to purchase electricity

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