NTPC Green Energy Signs 1,200 MW Solar PPA with PTC India

NTPC Renewable Energy Ltd (NTPC REL), the green arm of India's biggest power producer, has signed a 1,200 megawatt solar power purchase agreement with PTC India. The deal was announced on Thursday.

The PPA covers supply from solar projects that NTPC REL will set up. PTC India, a state-run power trading company, will buy the electricity and sell it to buyers across the country.

This is one of the largest single solar PPAs signed in India this year. The agreement runs for 25 years.

What the deal means

For NTPC REL, the deal gives it a firm buyer for a big chunk of new solar capacity. The company has set a target of 60 GW of renewable energy by 2032. It currently has about 3.4 GW of operational renewable projects and another 11 GW under construction.

PTC India gets a steady supply of clean power to trade. The company has been looking to grow its renewable energy portfolio. It already trades power from wind and solar projects but this is its biggest single solar deal.

The price was not disclosed. But solar tariffs in India have fallen sharply in recent years. Recent auctions have seen bids as low as Rs 2.15 per kilowatt-hour.

Bigger picture

The deal comes at a time when India is pushing hard to add renewable capacity. The government wants 500 GW of non-fossil fuel capacity by 2030. Solar is expected to make up the bulk of that.

But challenges remain. Land acquisition is slow. Grid connectivity is patchy. And payment delays from state distribution companies have scared off some investors.

Still, large PPAs like this one show that demand for solar power is strong. Corporate buyers and power traders are signing long-term deals to lock in low prices.

NTPC, the parent company, has also been shifting its focus. It plans to stop building new coal plants and instead invest heavily in solar, wind, and hydropower. The company has said it will spend Rs 1.5 lakh crore on clean energy projects by 2030.

PTC India, for its part, has been expanding beyond just trading. It has started developing its own renewable projects and is looking at battery storage as well.

Neither company gave a timeline for when the solar projects under this PPA will be built. But large solar farms typically take 18 to 24 months to commission after signing a PPA.

The deal is subject to standard regulatory approvals.