IISD Report Bats For Fast-Tracking Renewable Growth For NTPC

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A latest report from the International Institute for Sustainable Development (IISD) has taken a deep dive into the growth of renewables and other fuels in the energy basket of Indian power behemoth NTPC Limited. 

The think tank said that NTPC Limited is at a critical juncture in its transition to clean energy, with significant progress on renewable investments but ongoing coal expansion raising concerns over its long-term climate alignment.

While the state-run utility has accelerated renewable energy deployment and institutional reforms, IISD calls for a sharper shift away from new coal investments and greater alignment with global decarbonisation pathways.

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As of June 2025, NTPC contributes nearly a quarter of India’s total power generation, with coal accounting for 81% of its installed capacity. In 2021, the company announced a target to add 60 gigawatts (GW) of renewable energy by 2032, up from just 4.7 GW in 2024.

Scaling Renewables Through Innovation and Reform

IISD’s analysis highlights NTPC’s expanding renewable portfolio, including 11 GW under construction and an additional 20 GW in the pipeline. The utility has emerged as the leading bidder in recent solar auctions, marking a shift from its earlier role as a government-appointed intermediary in bundling renewable power for states.

The report outlines several key strategies behind NTPC’s green pivot:

• Diversification into new technologies such as floating solar, hybrid solar-wind plants, battery storage, pumped hydro and green hydrogen pilot projects to address intermittency and land constraints.
  
  

• Formation of a dedicated subsidiary, NTPC Green Energy Limited (NGEL), to consolidate and fast-track clean energy expansion. NGEL’s USD 1.2 billion IPO in November 2024—the largest green listing by a state entity—demonstrates investor confidence and provides a model for other State Power Companies (SPCs).
  
  

• Strategic partnerships and joint ventures with both public and private firms, including ONGC and renewable developers, to share project risks, secure land, and access transmission infrastructure.
  
  

Concerns Over Continued Coal Buildout

Despite these advances, IISD warns that NTPC’s plans to add 26 GW of new coal capacity by 2032 could jeopardise its climate commitments. The report notes that NTPC’s current decarbonisation strategy for its thermal fleet—centred on biomass co-firing and flexible coal plant operations—may not be cost-effective or scalable.

“NTPC’s transition is notable, but its dual strategy of aggressively expanding renewables while building new coal plants raises red flags on climate alignment,” the report states. IISD cautions that continued coal investments risk future asset stranding and contradict the IEA’s Net Zero by 2050 roadmap and Paris Agreement goals.

Recommendations for Strengthening the Transition

To strengthen its clean energy leadership, IISD recommends NTPC:

• Gradually phase out new coal plant development plans.
  
  

• Invest further in firm, dispatchable renewable solutions such as energy storage and hybrid projects.
  
  

• Align future capacity expansion with least-cost planning and updated demand forecasts.
  
  

• Enhance transparency around its coal retirement strategy and financial risks associated with thermal assets.