India’s largest power generation company has approved funding for two large-scale solar power projects demonstrating its intention to push forward with renewable energy development.
The board of NTPC Limited recently approved investment of Rs 3100 crore ($467 million) for the development of 260 MW solar power park in Rajasthan and 250 MW solar power park in Madhya Pradesh.
The company has already approved and started work on similar solar power parks in other states. The most recent update came from another solar power in the state of Rajasthan. NTPC allocated 420 MW capacity in units of 70 MW each. Fortum placed a bid of Rs 4.34/kWh (US¢6.5/kWh) which remains the lowest-ever tariff in India for solar power projects.
Solar power parks being developed by NTPC also includes the 500 MW project allocated to SunEdison in Andhra Pradesh. The project’s future is now at stake with the US-based developer facing financial troubles.
NTPC Limited plans to invest $10 billion to set up 10 GW of renewable energy capacity over the next 5 years. A large part of this capacity is expected in the form of solar power projects. The company has been asked by several state governments to set up large-scale solar parks and is reported to have 3 GW solar power capacity in its pipeline.