State-run power giant NTPC has floated a tender to acquire 1 GW operational solar projects, which entails an investment of around Rs 5,000 crore.
In a tender or request for proposal (RFP) issued on Friday, NTPC has invited bids from the promoters or lenders, authorised financial intermediaries of power generation companies, independent power producers or developers for offering operational solar based assets located in India.
The tender is expected to be finalised by October this year.
The document stated that in line with its long-term corporate plan, NTPC is taking various steps to make its energy portfolio greener by adding significant capacities of renewable energy (RE) sources.
By 2032, the company plans to have a minimum of 32 GW capacity through RE sources constituting nearly 25 per cent of its overall power generation capacity.
The RE portfolio of NTPC has ongoing capacity addition projects with around 2,298 MW projects under construction.
The company is also contemplating to increase its renewable generation capacity through acquisition of operation solar-based power assets located in India for a minimum capacity of 1 GW, it stated in the RFP.
The company can increase its power generation capacity instantly by going for inorganic growth or acquiring existing operational projects.
Setting up a solar project takes up to two years as per industry standards.
The company has a capital expenditure plan of Rs 21,000 crore for the current fiscal year, and most of it would be spent on adding new power generation capacities, it said.
For acquiring about 1 GW of operational solar power capacity, the company would have to shell out around Rs 5,000 crore as per back of the envelope calculations.
NTPC, formerly known as National Thermal Power Corporation, plans to be a 130 GW-company by 2032 with diversified fuel mix.
With a total installed capacity of 62,910 MW, the NTPC group has 70 power stations comprising of 24 coal, 7 combined cycle gas/liquid fuel, 1 hydro, 13 renewables along with 25 subsidiary and JV power stations.
