France’s EDF In Separate Deals with NTPC, Coal India For PSP, Renewable Projects

It’s been a busy weekend for French Energy major EDF in India, as the French government backed utility signed agreements with NTPC Limited, a Maharatna company of India to  develop (including construction), own, operate and maintain pumped storage project(s) and/or any other hydro power project(s) or Hydro Project(s) bundled with other Renewable Energy projects and explore  opportunities in  distribution business. The agreement is a repeat of a similar deal it signed with India’s other major PSU and the World’s largest coal miner, Coal India Limited.

Subsequent to the signing of the term sheet  on 23^rd February 2025, during Elecrama 2025, NTPC and EDF propose to form a JVC with 50: 50 Partnership after requisite approval from the Government of India. EDF brings extensive experience with nuclear, as well as Hydro projects to the table for both the PSUs. India has set a target of 100 GW of nuclear energy capacity by 2047, where NTPC is expected to play a key role.

This JVC  will undertake such Project(s) on its own and / or may create  JV and Subsidiaries (“Project SPV”) for undertaking such Project(s) within India and neighbouring countries.

NTPC Ltd. is India’s largest integrated power utility, contributing one-fourth of the India’s power requirements and has an installed capacity of over 77 GW, with an additional capacity of 29.5 GW under construction, including 9.6 GW of renewable energy capacity. The company is committed to achieving 60 GW of renewable energy capacity by 2032.

Coal India on the other hand has announced plans to become a net zero firm without any clear timeline, while also targeting extraction of a billion tonnes of coal annually well before 2030. For now, it has set a target of 3 GW of renewable energy by FY 2026, something it is seeking with solar projects between now and then.

Coal India’s earlier plans to get into solar  equipment manufacturing have also been shelved after it evaluated changing market dynamics.

The focus on Pumped storage for both the energy PSUs is a natural outcome of the demands from the segment, where India has high hopes by 2035. PSP projects are expected to play a vital role in balancing the grid as the share of renewables climbs. However, due to higher upfront investments and long construction periods, besides many more permissions including environmental audits, these are considered a safer bet for the PSUs with experience in such large projects.