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Goa to buy solar power from NTPC for next three years

According to the directives of the Joint Electricity Regulatory Commission (JERC), it is mandatory for the electricity department to purchase a defined percentage of its power from renewable sources, including solar and non-solar.

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Last Updated: Nov 28, 2019, 02.49 PM IST|Original: Nov 28, 2019, 02.49 PM IST
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(This story originally appeared in on Nov 28, 2019)
The cabinet on Wednesday approved a proposal for extending the power purchase agreement executed with M/s NTPC Vidyut Vypar Nigam Ltd (NVVNL) for purchase of solar power by three years.

Power minister Nilesh Cabral said that a lower rate of Rs 5.5 per unit has been negotiated as against the earlier Rs 7.99 per unit.

According to the directives of the Joint Electricity Regulatory Commission (JERC), it is mandatory for the electricity department to purchase a defined percentage of its power from renewable sources, including solar and non-solar.

The earlier five-year contract ended on August 22.

The cost to the government for the renewed contract period is Rs 20.6 crore. An official said the decision to extend the contract with NVVNL was taken since there was no response to its tender floated in March to meet the target of solar renewable purchase obligation (RPO) for 2019-20 of 187 million units (MUs) even after the last date to receive bids was extended.

A tender was floated again in June and the last date of receiving entries was extended four times, yet there was no feedback, he said.

The market study showed there was no short-term power available due to high RPO target fixed by respective state regulatory commissions, the official said.

In the face of the target for the current financial year, and no adequate solar power available with the electricity department, the proposal was made to the government to extend the power purchase agreement with NVVNL for the balance financial year, the official said.

He said the power minister had asked that the current rate for long term purchase with M/s SECI Ltd be assessed, but it expressed its inability to supply solar power on medium and short-term basis.

The state's target of solar RPO for 2020-21 and 2021-22 is 254.6 MU and 350 MU, respectively. He said to meet increasing targets of solar RPO, an approval was given to extent the contract with NVVNL.

He said they expect to purchase solar power from M/s SECI Ltd on long-term agreement once it is ready.

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