New Delhi: NTPC Ltd, India’s largest power generator, plans to partner with National Investment and Infrastructure Fund (NIIF), the country’s quasi-sovereign wealth fund, and Oil and Natural Gas Corporation (ONGC) to acquire and develop green energy assets, including offshore wind projects.
The plans were contained in a letter to shareholders by NTPC chairman and managing director Gurdeep Singh in the company’s annual report for FY21. Further, efforts are on for partnering with NIIF and ONGC for exploring opportunities in acquisitions and development of renewable assets, including offshore wind, Gurdeep Singh said in his letter.
NTPC’s strategy gains significance as the ministry of new and renewable energy has set a target of adding 30 gigawatts (GW) of offshore wind energy projects by 2030. India plans to leverage scale to lower offshore energy tariffs by harnessing the enormous wind power potential along its 7,600km coastline. NTPC is, meanwhile, preparing to list its clean energy units NTPC Renewable Energy Limited (NTPC REL) and NTPC Vidyut Vyapar Nigam Ltd (NVVN). The company has set an ambitious aim of 60 GW renewable energy capacity by 2032 from the existing 4.7 GW. It plans to invest ₹1 trillion between 2019 and 2024 to become a 130GW power producer by 2032.
“A total of 15% (1,560 MW) of renewable bids finalized in the country have been won in FY2020-21 and 325 MW in FY 2021-22 till date by competing with various players in the sector. It is pertinent to mention that your company had won solar capacity in the GUVNL tender at a record low tariff of ₹1.99/kWh, which set a new benchmark in the sector. This underlines the seriousness of your company on its RE strategy,” Singh said in his letter.
NTPC Group posted a net profit of $1.85 billion in FY21. It has also set an aim of 10% reduction in net energy intensity. The state-run company has an installed capacity of about 67 GW across 70 power projects, with 18 GW under construction.
Currently, the company has nearly 1.5 GW of operational renewable capacity, 3 GW projects are in development stage and tenders have been issued for 5 GW of new capacity. Under outsourced/ developer mode, 4.7 GW is operational, and 790 MW is under construction,” the letter added.
This comes against the backdrop of India’s peak power demand hitting an all-time high of 200.57 GW on 7 July amid a revival in economic activity. Also, in a reaffirmation of the country’s push for green energy sources, solar and wind generation recorded an all-time high of 43.1 GW on 27 July.
“On generation front, your company set new benchmarks and registered highest ever generation of 314 BUs, an increase of over 8% over previous year even as the country’s generation remained at the same level. Your company crossed 1BU/day generation mark for the first time on 18 January 2021 and recorded highest ever single day gross generation of 1,192.41 MUs (group) on 19 March 2021, and 990.65 MUs (standalone) on 20 March 2021,” according to the letter.
As part of its diversification strategy, NTPC is also looking to leverage hydrogen for transportation by mixing the fuel with natural gas for City Gas Distribution (CGD) network. NTPC REL has also inked a pact with the Union territory of Ladakh for a green hydrogen mobility project, with the company along with NVVN jointly executing the project.