Government Plans Auctions for Power Plants Without PPAs

Government Plans Auctions for Power Plants Without PPAs

The government expects to conduct auctions next month to help idling power plants that do not have power purchase agreements (PPAs).

The power ministry is working on a demand aggregation model, whereby demand from all states will be aggregated by a nodal agency and tariff-based competitive bids will be invited from power generating companies.

In the first round, bids for 2,500 mw capacity for a period of less than seven years are likely to be called, a senior government official said. “We are working on aggregation model. Today states are in need of power but are not signing power purchase agreements as they do not want to sign long-term pacts and get tied to fixed costs,” he said on condition of anonymity. Read More…

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