Government Discovers Higher Tariff Under Auctions To Revive Stressed Power Assets


Government Discovers Higher Tariff Under Auctions To Revive Stressed Power Assets

NHPC Ltd. said the tariff discovered through the latest reverse auction to sell power from stressed units may be too high for distribution companies. “The tariff discovered in the auctions has been very high this time at Rs 4.41 per kilowatt hour…

We will find it difficult to sell this power to discoms at this tariff,” Balraj Joshi, managing director at NHPC Ltd. told BloombergQuint, adding that NHPC’s own projects are selling power at an average price of Rs 3.25 per kwH. “Now discoms will have to bid at how much price they want power. If there are no takers for this tariff, we will have a bit of problem.”

The auction, part of the government’s second pilot to procure aggregate power of 2,500 megawatt for three years, aims to revive demand for electricity generators who don’t have power purchase agreements with discoms.Read More

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