Auction for 2,500 MW pilot PPA scheme in January

The auction for selling 2,500 mega-watt (MW) power under the central government’s pilot scheme for stressed power plants is expected to be held in January, 2020, PTC India, the aggregator of the scheme, said on Tuesday. The second batch of the auctions under this scheme was held earlier in 2019, but was recently cancelled due to tepid response from electricity distribution companies (discoms).

The pilot scheme aims to sign power purchase agreements (PPAs) with electricity generating capacities which are stressed due to the lack of contracted buyers. The tariff of Rs 4.41/unit was discovered in the cancelled auction, which buyers found to be too high. According to industry sources, as many as 13 companies including Jindal Power, JSW Energy, Adani Power and Sembcorp emerged as the successful bidders in the cancelled round of auctions,.