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Govt floats tender to procure gas-based plants

Govt floats tender to procure gas-based plants

In order to purchase 4 gigawatts (GW) of electricity from gas-based power plants during the peak
demand months of April and May, the Electricity Ministry published a tender on Sunday.
The state-run power producer NTPC’s subsidiary, NTPC Vidyut Vyapar Nigam (NVVN), issued a
Request for Supply (RfS) for the purchase of electricity.

During the defined crunch period, NVVN has been designated as a nodal agency to facilitate the
supply of 4,000 megawatts (MW) of power from GBP units (April 10 to May 16, 2023). The Day
Ahead Market (DAM) would be sufficiently supplied as a result, which is anticipated to moderate the
clearing price, according to the RfS paper.

In a power exchange, the Day-Ahead-Market (DAM) is a physical electricity trading market for
deliveries for any/some/all 15-minute time blocks in the following day’s 24-hour period beginning at

The document further said that chosen bidders would be qualified to participate in the opening of
price bids, a reverse auction, and bucket filing for the purpose of granting Letters of Award (LOA)
through an open, competitive bidding procedure.

The bidders will be chosen on March 25 after the deadline for submission of proposals. On March
27, the pricing bids from eligible bidders will be revealed. By April 6, 2023, the contract between the
chosen bidders and NVVN will have been signed. The Letter of Award (LoA) will be released on
March 30.