Essar Energy plc has signed a power purchase agreement (PPA) with Noida Power Company Ltd for 240 megawatts (MW) of contracted capacity from Essar Energy’s 600MW coal-fired Tori II power station which is under construction in Jharkhand. The PPA was secured following a competitive bidding process, with supply of power under the terms of the PPA being due to commence from April 2014.
Under the terms of the PPA, Essar Energy will supply power at a delivered levelised tariff, including transmission costs, of Rs.4.08 per kilowatt hour, which is the highest long term tariff achieved through competitive bidding in India to date. The levelised tariff net of transmission costs is Rs. 3.27 per kWh (approximately 6.2 US cents per kWh).