The Indian government has dropped its plan to build 12,000 MW of solar power generation capacity out of the total 15,000 MW initially envisaged for development through the state-run utility NTPC (National Thermal Power Corporation). The company has already awarded the first tranche (combined capacity of 3,000 MW) of the programme, of which 2,750 MW have been commissioned and 250 MW are currently under construction.
The government initially planned to bundle expensive solar energy with cheaper thermal power, in order to supply combined power at an affordable price to specific states. NTPC had been selected to implement 15 GW of solar capacity over 5 years from 2014-15 to 2018-19 in three tranches (3,000 MW, 5,000 MW and 7,000 MW). However, since domestic solar power prices have been falling recently and remain low, the government has decided not to take up the second tranche of 5 GW and the third tranche of 7 GW.
The Indian government aims at installing 175 GW of renewable capacity by 2022, including 100 GW from solar, 60 GW from wind, 10 GW from biomass and 5 GW from small hydro power.
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