NTPC Shifts Objective; to Stop Land Acquisition for Thermal Projects

NTPC proposes to completely stop land acquisition for thermal projects and rather look for reducing its carbon footprint through a renewable energy push.

India’s largest coal-fired power producer NTPC has announced that it proposes to completely stop land acquisition for greenfield thermal projects and rather look for reducing its carbon footprint through an aggressive renewable energy push.

“We have taken the decision not to acquire any further land for greenfield thermal projects in near future and the focus will be on reducing the carbon footprint,” NTPC chairman Gurdeep Singh said in a statement to the shareholders at a recently concluded AGM.

As part of its initiative to transform itself into a renewable player, NTPC has also decided to set up a separate green-focused subsidiary.

IANS reported that by 2032, the power giant plans to add 32 GW of renewable generation capacity to its portfolio through organic and inorganic routes. Non-fossil fuel-based generation capacity will make up nearly 30 percent of its portfolio, which, at present, is less than 10 percent. While the short term target is to reach 10 GW of renewable capacity up to 2022.

“In order to get access to large tracts of land for RE projects, discussions are in progress with state governments of Gujarat, Rajasthan, Madhya Pradesh, Maharashtra and Andhra Pradesh for allocation of land parcels for setting up of renewable projects. These would be developed under Ultra Mega Renewable Energy Power Parks scheme of the government of India,” the company chairman informed the shareholders.

NTPC plans to become a 130 GW power producing company by 2032 investing over Rs 1 lakh crore (USD 14 billion) by 2024.

The capacity will have a diversified fuel mix of 65.4 percent coal, 4.6 percent gas, 1.5 percent nuclear, and 28.5 percent renewable energy, including hydel generation capacity. The firms’ total thermal generation capacity is around 57 GW, and the shift in focus is to ensure long-term sustainability.

In July, the firm had issued a tender to acquire 1 GW of operational solar projects, which entails an investment of around Rs 5,000 crore. In a request for proposal (RFP), NTPC has invited bids from the promoters or lenders, authorised financial intermediaries of power generation companies, independent power producers (IPPs), or developers for offering operational solar-based assets located in India.

More recently, it had issued a Notice Inviting Applications (NIA), inviting applications from eligible firms for the enlistment of EPC Vendors for the development of floating or ground-mounted solar power projects of NTPC.