Around 800 MW out of 1,200 MW wind power projects auctioned by NTPC in 2018 is yet to receive regulatory approvals. Hero Future Energies, Renew Power, Continuum Wind, Sprng Energy, EDF and Mytrah Energy had emerged as the biggest winners of the auction conducted in August 2018, with tariffs ranging between Rs 2.77 and Rs 2.83 per unit.
The state regulator’s approval for adoption of tariff is required within two months after signing the power purchase agreement (PPA) or the power sale agreement (PSA), whichever is first. But with the power regulators delaying their consent, this period has lapsed and NTPC has given the winners the option of withdrawing altogether.
Approval has not been received for 600-800 MW, so developers are trying to decide if they want to go ahead because the time frame for commissioning, which is 18 months, will not be extended, according to NTPC’s terms.
Among the winners, Mytrah Energy has decided not to commission the project because the state power regulator in Uttar Pradesh has caused a delay. The current delays in adoption of tariffs increase the risk perception of project commissioning delays in future NTPC tenders.
A tender for 1.2 GW of ISTS-connected wind projects from NTPC is currently open for bidding. The delays could result in lower participation from power producers in the new tender.