NTPC, ONGC Form JV For Renewable Energy

By Saur News Bureau/ Updated On Mon, Nov 4th, 2024

Maharatna PSUs NTPC and ONGC have collaborated to form a Joint Venture Company (JVC) through their Green Energy Subsidiaries (NTPC Green Energy Ltd. and ONGC Green Energy Ltd.) to further promote their interest in renewable and new energy arena.

Subsequent to the signing of the Joint Venture Agreement on 7^th February 2024, during India Energy Week 2024, and obtaining the required statutory approvals from DIPAM and NITI Aayog, NGEL has submitted an application to the Ministry of Corporate Affairs for the incorporation of a 50:50 Joint Venture Company with OGL.

This JVC shall venture into various Renewable Energy (RE) and New Energy opportunities including Solar, Wind (Onshore/Offshore), Energy Storage (Pump/Battery), Green molecule (Green Hydrogen, Green Ammonia, Sustainable Aviation Fuel (SAF), Green Methanol), E-mobility, Carbon Credits, Green Credits, etc.

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The JVC will also seek opportunities to acquire renewable energy assets and will also consider participation in upcoming offshore wind tenders in Tamil Nadu and Gujrat.

The strategic partnership between NGEL and OGL signifies a concerted effort towards advancing sustainable energy initiatives, aligning closely with the nation’s ambitious goals for a greener future. Considering their domain expertise and resources, both entities are poised to contribute significantly to India’s renewable energy landscape, driving innovation and fostering environmental stewardship.

Besides the experience of NTPC, the access to pools of capital for the JV makes for a strong case for the JV to make an impact, if backed fully by both partners. NTPC has been the preferred partner for most PSUs seeking a presence in the booming renewable energy segment, but the results have not always been visible, in terms of going beyond MoU stage or actual projects. With ONGC, one senses, that will not be the case. NTPC Green Energy of course also has its upcoming IPO to further boost capital availability and more growth opportunities beyond its string pipeline of green projects.