(EnergyAsia, June 6 2012, Wednesday) — Essar Energy said it has agreed to commit 240MW of its Tori II 600MW coal-fired plant under construction in Jharkhand state in India to supply power to Noida Power Company Ltd.
Essar Energy plc, a privte India-focused integrated energy company, said its subsidiary, Essar Power Jharkhand Limited (EPJL), won a competitive bid to secure the power purchase agreement (PPA) for 25 years starting April 2014.
The company will supply power at a delivered levelised tariff, including transmission costs, of Rs4.08 per kilowatt hour, making it India’s highest long term tariff achieved through competitive bidding. (US$1=Rs55). The levelised tariff net of transmission costs is Rs3.27 per kWh.
Essar said this is the first PPA signed for the Tori II project. At its 1,200 MW Tori I project, which is also under construction, Essar Energy has already signed two PPAs of 300 MW and 450 MW, both for 25 years, with the Bihar State Electricity Board.
Naresh Nayyar, chief executive of Essar Energy, said: “We are pleased to have concluded this agreement with Noida Power. We continue to make good progress in securing long term revenues from our power generation projects in India.”
Essar Energy currently has 2,200 MW of generation capacity operational, with a further 2,310 MW of capacity due to be commissioned this year at the Salaya I, Mahan I and Vadinar P2 projects.
The company expects to commission four power projects by March 2014 including Tori I and Tori II, raising Essar Energy’s total capacity to 6,700 MW from 2,200MW at present.