NTPC’s ISTS Connected FDRE – Tranche II Auction Concludes: Top Energy Firms Secure 1584 MW at Competitive Tariffs

In a significant development in India’s renewable energy sector, the National Thermal Power Corporation (NTPC) has concluded the reverse auction for its ISTS (Inter-State Transmission System) Connected FDRE (Flexible and Despatchable Renewable Energy) Tranche II. The auction, held on March 22, 2024, was part of a tender process for the allocation of 3000 MW, focusing specifically on an electronically reverse-auctioned capacity of 1584 MW.

The reverse auction commenced with an opening Levelized tariff of INR 4.64 per kWh, marking a competitive start for the bidding process. Among the contenders, ABC Cleantech Private Limited emerged as the L1 bidder, securing a full capacity award of 300 MW at the opening tariff of INR 4.64 per kWh, indicating their competitive pricing and readiness to contribute to India’s renewable energy ambitions.

Following closely, Juniper Green Energy Private Limited and Hero Solar Energy Private Limited both secured bids for 200 MW and 120 MW, respectively, with a slightly higher final tariff of INR 4.69 per kWh. This tariff increment reflects the competitive nature of the auction and the diverse pricing strategies of the participating firms.

Serentica Renewables India 11 Private Limited and Tata Power Renewable Energy Limited each won bids for 200 MW at a final tariff of INR 4.71 per kWh. Their participation underscores the keen interest of established players in expanding their renewable energy portfolios.

Further down the list, BN Dispatchable-1 Private Limited and ReNew Solar Power Private Limited were awarded capacities of 110 MW and 400 MW, respectively, at a final tariff of INR 4.72 per kWh. This rate, slightly above the starting L1 tariff, illustrates the variance in bid competitiveness and project execution strategies among participants.

ACME Cleantech Solutions Private Limited, bidding for 250 MW, was awarded a reduced capacity of 54 MW at a final tariff of INR 4.73 per kWh, demonstrating the auction’s dynamic nature and the strategic adjustments made by bidders to align with the auction’s outcome.

This reverse auction marks a critical step forward in India’s journey toward achieving its renewable energy targets, showcasing the competitive spirit and commitment of domestic and international firms to invest in India’s green energy future. The participation of multiple key players in the sector highlights the vibrancy of India’s renewable energy market and its attractiveness to investors keen on supporting sustainable and clean energy initiatives.