NTPC Ltd is planning to build an ultra mega solar park in Bhuj district in Gujarat with a capacity of 5,000 MW that entails an investment of Rs. 20,000 crore. A part of the capacity could be set up without a power purchase agreement , NTPC Chairman Gurdeep Singh on Monday.

Interacting with reporters, Singh said the company is in the process of identifying land parcels in Bhuj, which has a very high solar radiation. The plant will use only PV technology, based on certain stringent specifications decided by the Ministry of New and Renewable Energy,

The company is also exploring the possibility of setting up a similar capacity park in Rajasthan, but the work in this case is in a nascent stage. The tariff for the Bhuj plant would be in the range of about Rs. 2.60 to Rs. 2.70 per unit, he said.

The Chairman also said NTPC is also mulling selling some capacity of the mega solar plant on a merchant basis, which will give better returns . It is possible that 90 per cent of the plant’s power would be sold through a power purchase agreement and rest on a merchant basis.

Solar radiation

He said that a solar park requires a good site with plenty of solar radiation, access to capital and connectivity to the grid. As there is a downward trend in the global money market, raising that kind of capital is not a problem for the solar park projects.

NTPC is committed to the renewable energy and by 2030 at least 30,000 MW of renewable energy would be produced by the company. Solar power has become more and more competitive, which will bring stability in the prices and bring in the new investment cycle, Singh said.