NTPC Investor Presentation Q1 FY21: focus on Renewables, Sustainability

At the 17th Annual Analysts and Investors Meet of NTPC Limited, the Indian electric utility highlighted its key achievements in FY21 in driving the adoption of green energy, particlulary solar power in the country.

The company stated that it had incorporated NTPC Renewable Energy Limited, a new subsidiary for RE business, in FY21. It has won 1,885 MW of TBCB (tariff-based competitive bidding) contracts since FY21 and is setting up the country’s largest solar park, with a capacity of 4.75 GW, in Rann of Kutch, Khavada, Gujarat. Details about the park were given by NTPC as follows:

• In-principle approval accorded by MNRE for development of this park as UMREPP
• Solar and Wind generation is envisaged from this park
• Part of the capacity shall be used for producing green hydrogen, which will be exported through nearest port
• Connectivity and LTA for first 500 MW is being applied and the same for balance capacity shall follow
• CTU has initiated activities for setting up of ISTS substation at 765KV/400KV and Transmission Lines at 765 KV to Bhuj
• Commissioning targets are 50% in 3 years and complete park in 5 years from allotment
• Considering the Renewable Energy Plans of Gujarat Government, potential of up to 10
  GW of RE power exists in Gujarat itself
• Further, sale of power from this park can be targeted through any of the Tariff Based competitive Biddings, as the transmission charges are waived for RE Power till June 2025.

Moreover, NTPC plans to develop another solar plant – an Ultra Mega Renewable Energy Power Park (UMREPP) with up to 10 GW capacity. The power producer has also signed an MoU (Memorandum of Understanding) with Damodar Valley Corporation (DVC) for the development of solar plants on DVC Reservoirs and land.

The energy conglomerate signed another MoU with Oil and Natural Gas Corporation (ONGC) to jointly develop offshore wind projects. It also specified that it had undertaken due technical and commercial diligence for the acquisition of 500 MW solar assets.

State-run NTPC has plans to list its arm NTPC Renewable Energy Ltd in 2022-23 to raise funds for achieving its ambitious target of 60 GW installed renewable energy (including solar and wind) capacity by 2032, which entails a total investment of Rs 2.5 lakh crore. At present, the NTPC Group has a renewable energy capacity of around 1,365 MW.

The company plans to have 132 GW of total power generation capacity by 2032. Its current total installed capacity stands at 66 GW. Out of this, thermal (coal+gas) accounts for 61 GW, hydro for 3.7 GW, solar for 1 GW and the remainder is supplied by wind.

For its 60 GW renewable energy target, the firm hopes to build  48 GW on its own, and acquire a further 12 GW of projects.