NTPC Plans to Be­come Big­gest Re­new­able En­ergy Co in 10 Yrs

ITS RS 5-LAKH CRORE CAPEX PLAN WILL BE SKEWED TO­WARDS ADDING RE­NEW­ABLE EN­ERGY CA­PAC­ITY

Resource Digest - - CONTENT -

NTPC, In­dia's largest elec­tric­ity gen­er­a­tor, is tweak­ing its ex­pan­sion plan to be­come the big­gest re­new­able en­ergy com­pany in the next 10 years. The state owned com­pany's 5 lakh crore cap­i­tal ex­pen­di­ture plan will be skewed to­wards adding re­new­able en­ergy ca­pac­ity in­stead of set­ting up more ther­mal units.

NTPC has tar­geted gen­er­a­tion ca­pac­ity of 128,000 megawatts by 2030 from the present level of over 47,000 MW. “Keep­ing the to­tal ca­pac­ity ad­di­tion con­stant, we are re­cast­ing the ex­pan­sion plan to in­crease the mix of re­new­able power ca­pac­ity and re­duce the share of ther­mal power,” a se­nior NTPC of­fi­cial said.

The util­ity had ear­lier de­cided to set up re­new­able en­ergy ca­pac­ity of about 10,000 MW in the next four years. This fig­ure is likely to be re­vised up­wards as part of the plan to en­hance re­new­able power gen­er­a­tion. Its cur­rent re­new­able en­ergy port­fo­lio con­sists of nine so­lar power plants with 360 MW of ca­pac­ity.

“To­tal in­vest­ment as a re­sult is `5 lakh crore. Out of likely to be the to­tal in­vest­ment, NTPC will have to shell out a max­i­mum of 1.5 lakh crore as eq­uity for the ex­pan­sion plan. Rest of the funds are to be fi­nanced by long-term debt,” said the of­fi­cial.

NTPC'S de­ci­sion to re­duce the share of ther­mal power and in­crease re­new­able en­ergy gen­er­a­tion is to align it­self with global trends of re­duc­ing green­house gas emis­sions and de­vel­op­ing clean sources of en­ergy. In­dia has set a re­new­able power de­ploy­ment tar­get of 175 GW by 2022, which in­cludes 100 GW from so­lar and 60 GW from wind en­ergy.

“Over the last few years, large for­eign fi­nan­cial in­sti­tu­tions have dras­ti­cally re­duced their ex­po­sure to coal-fired projects un­der pres­sure from green lob­bies. At present, procur­ing for­eign loans for re­new­able en­ergy projects is far eas­ier than ther­mal power projects. A green power gen­er­a­tion com­pany also at­tracts global eq­uity in­vestors,” a se­nior an­a­lyst said.

Of the 10,000 MW of re­new­able en­ergy ca­pac­ity planned, NTPC has com­mis­sioned 250 MW and has started work on de­vel­op­ing 3,010 MW of projects. It also plans to set up about 800 MW of so­lar plants on wa­ter reservoirs at ther­mal power plants.

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