Published 11 May 2012
Essar Energy subsidiary Essar Power Jharkhand has entered into a power purchase agreement (PPA) with Noida Power.
Under the terms of the PPA, Essar Energy will supply 240MW of capacity to Noida Power from its 600MW coal-fired Tori II power station in Jharkhand, India for a period of 25 years.
The plant is currently under development.
Essar Energy will supply power at a delivered levelised tariff under the terms of the PPA, due to commence from April 2014.
This is the first PPA that has been signed for the Tori II project.
Essar Energy chief executive Naresh Nayyar said, "We continue to make good progress in securing long term revenues from our power generation projects in India."
Essar Energy has already signed two PPAs of 300MW and 450MW for its 1,200MW Tori I project, which is also under construction.
The two PPAs of 300MW and 450MW have been signed with the Bihar State Electricity Board for a period of 25 years.
Essar Energy currently has 2,200MW of generation capacity which is operational and an additional 2,310MW of capacity due to be commissioned this year.
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