In a significant development towards providing cost-effective power to the electricity consumers, the State government on Monday entered into a Power Purchase Agreement (PPA) with NTPC for buying 750 MW of solar power at ₹2.72 per unit with 2% rebate on timely payments by the discoms.
NTPC general manager Manoj Mathur and the Chief General Managers of Eastern and Southern discoms have signed the PPA in the presence of Principal Secretary (Energy) Ajay Jain, AP-Genco Managing Director and AP-Transco Chairman and Managing Director (CMD) K.Vijayanand, CMDs H.Y.Dora (EPDCL) and M.M. Naik (SPDCL) and AP-Transco Joint Managing Director Dinesh Paruchuri and other top officials of the power utilities.
According to an official release, NTPC is facilitating the development of solar power trading as an intermediary agency.
Spring Energy private Ltd., SB Energy Pvt Ltd. and Ayan Energy Pvt. Ltd. were selected through competitive bidding by the NTPC to start supplying power in 8 to 10 months.
Mr. Jain said around ₹305 billion has been invested in the last three years for installing 1,818 MW of solar and 2,873 MW of wind energy plants.
It has been targeted to achieve 18,000 MW of renewable energy capacity addition by 2021-22, which is more than 10% of the national target of 175 gigawatts.