NTPC may set up solar power project without signing a power purchase pact

NTPC is considering setting up of a solar power project without signing a power purchase agreement (PPA) with State Discoms.

A top company official said: “If solar power is really the cheapest source of electricity, the power generated should be bought by the power distribution companies (Discoms) or other entities without any hurdles. The power can be sold either through the power exchanges or through any other platform. We are considering the option of setting up a solar power project without a PPA.”

The official did not disclose the generation capacity or location where such a project is being assessed. The fact that NTPC is looking to set up solar power project without signing a PPA is reflection of the confidence that the power major has in being able to find buyers for the solar power generated by the project.