PK Pradhan (left) of Gridco and MKV Ramarao of NTPC show the power purchased agreement papers in the presence of chief secretary Bijay Kumar Patnaik (sitting left) at the Secretariat in Bhubaneswar. Picture by Sanjib Mukherjee

Bhubaneswar, April 26: Orissa will now get around 38MW solar power from the National Thermal Power Corporation (NTPC) and other generators which are expected to meet the shortfall.

The state-run Grid Corporation of Orissa (Gridco) today signed a power purchase agreement with the NTPC to buy 10MW solar energy.

While the Gridco will purchase 5MW solar power from the Dadri solar power station in UP, it will buy equal quantity from the Faridabad power station in Haryana.

The agreement was signed by NTPC executive director (commercial) M.K.V. Ramarao and his counterpart in Gridoco P.K. Pradhan.

Gridco managing director Hemant Sharma said Orissa’s solar power requirement was 40MW. “We have tied up for 38MW solar power. We will get 30MW from the NTPC and its subsidiaries, while we will procure 8MW from private solar developers,” he said.

The Orissa Electricity Regulatory Commission had fixed renewable energy purchase obligation (RPO) for Gridco at 40MW, said Sharma.

In order to fulfil the solar purchase obligation of Orissa, the Gridco today executed a power purchase agreement with NTPC, he said.

Earlier, Gridco had signed power purchase agreement with eight solar developers in Orissa to buy 8MW. These solar units set up at Sonepur, Barkote, Tangi, Nayagarh, Bonai, Balangir, Bamra and Barang were expected to be commissioned by July, said the Gridco managing director.

“Gridco is in constant endeavour to develop solar power projects in the state as a part of the National Action Plan for Climate Change,” said Sharma.

The generation cost of solar power, however, is very high in comparison with the thermal power.

While the generation cost of solar power is as high as Rs 17 per unit, the corresponding cost for thermal power generation is around Rs 2 per unit.

Secretary of the new and renewable energy ministry Dipak Gupta, who was present at the event, said: “The central government is providing 90 per cent funds for the solar power generation.”

The ministry of new and renewable energy provides a subsidy of Rs 12.50 paisa per unit, while Gridco will bear the remaining cost of Rs 4.50 per unit.

Gridco has also signed power sale agreement with the NTPC Vidyut Vyapar Nigam (NVVN) to avail solar power bundled with equivalent capacity of thermal power from unallocated share of the upcoming NTPC stations under new solar projects scheme of ministry of new and renewable energy.

Under the scheme, 20MW solar power has been allocated to Gridco.

According to energy department sources, Orissa’s peak hour requirement of power is 3,200MW. But the current availability of power from hydel and thermal sources is around 2,600MW.

However, the shortfall of 600MW is being met by supply from independent producers and industries which have their own captive power plants.