Renewables Contribute Only 4% To NTPC’s Turnover in FY24

Renewables Contribute Only 4% To NTPC’s Turnover

According to the latest numbers from India’s power giant NTPC, renewable energy assets contribute a mere 1.23% to the company’s turnover. When hydro projects are included, this figure increases to just 4%. NTPC Limited’s Business Responsibility and Sustainability Report indicates that power generation accounts for 94.19% of the company’s total turnover.

The report reveals that the majority of NTPC’s turnover—83.66%—comes from coal-based power generation. Gas power accounts for 6.47%, while solar and wind combined make up only 1.3% of the power generation turnover. Specifically, solar contributes 1.22% and wind just 0.08%. Power generation from NTPC Group’s hydroelectric projects accounts for 2.76% of its power generation turnover. Overall, non-fossil fuel power generation accounts for 4.06% of NTPC’s turnover, the report said.

The company’s annual report for FY24 presents similar figures, with additional details. NTPC reported a total turnover of ₹1,76,641.71 crore, with renewables (including hydro) accounting for 4.1%. Meanwhile, 5.8% of its turnover is derived from non-energy businesses, and 90.1% comes from fossil fuel-based energy.

Share of annual turnover of NTPC Limited. Source: NTPC Annual Report

NTPC Group operates 93 plants within India and one abroad, with its power market presence spanning 25 Indian states, Sri Lanka, and Bangladesh. The company also supplies power to Bangladesh and Nepal. NTPC has 24 subsidiaries that manage various forms of energy across different regions.

Renewable Energy Expansion Plans

During a recent investor call, NTPC’s top management stated that the company’s total installed capacity has reached 76 GW, generating approximately 24% of India’s power. NTPC’s installed capacity represents around 17% of India’s total power capacity. The company aims to increase its total capacity to over 130 GW by 2032, with plans to secure 60 GW from renewable energy sources.

NTPC highlighted significant efforts to expand its green energy portfolio. Its subsidiary THDC is set to commission a 1 GW Pumped Hydro Project (PSP). Over the next three years, NTPC plans to add 7 GW of new conventional energy capacity and 16 GW of renewable energy capacity.

In the longer term, the company, besides the existing 2 GW of installed renewable capacity, has another 4 GW under construction. It has  won close to 4 GW tariff based competitive bidding contracts since FY22. It is also setting up country’s largest solar park of 4.75 GW in Kutch district of Gujarat. Plans for development of another 19 GW ultra-mega renewable energy parks is in various stages. With all this, it claims there is a clear visibility, project pipeline of RE capacity on hand to attain the target of 60 GW RE capacity by 2032.

NTPC’s installed capacity mix. Source: NTPC Annual Report

“Our hydro subsidiaries, NEEPCO and THDC, are ramping up their capital expenditure and are expected to execute 12 GW of non-fossil fuel-based capacity at an estimated cost of around ₹75,000 crore by FY30,” the top management stated during the investor call.

“As we work towards a carbon-neutral economy, we envision an integrated energy spectrum that includes renewables, nuclear power, green hydrogen and chemicals, green mobility, energy storage, and waste-to-energy initiatives. Our strategy will focus on low-emission thermal power generation, maximizing the use of low-carbon fuels, biomass, and adopting carbon capture and utilization technologies,” they added.

NTPC has launched its first Green Hydrogen blending project and is building pilot projects for synthesizing Green Methanol. Additionally, the company is setting up the first Green Hydrogen Mobility project in Ladakh and Green Hydrogen projects for the Indian Army.

Details of the business vertical of NTPC. Source: NTPC Annual Report

The apparently slow pace of renewables additions thus have to accelerate significantly in the coming years for NTPC to meet its targets., considering a projected addition of under 2 GW of fresh renewables capacity this year.

Perhaps, coming at a time when the power giant has dusted off plans to add close to 26 GW of thermal capacity is what will worry many experts, who expected the form to play a much more significant role in India’s energy transition. it is obvious that given a choice, NTPC is comfortable chasing thermal capacity over renewables, considering its entrenched thermal interests and deep comfort with it. That is also obvious by the complete confidence of its management in the thermal capacity additions to come, as compared to renewables, where they have been much more wary of committing to numbers other than the distant 60 GW target.