NTPC Incorporates a Subsidiary for its Renewable Energy Business

NTPC Ltd has announced that it has officially incorporated a subsidiary for its renewable energy business.

State-owned NTPC Ltd, India’s largest energy conglomerate, has announced that it has officially incorporated a subsidiary for its renewable energy business. “NTPC Ltd has incorporated a wholly-owned subsidiary, in the name of NTPC Renewable Energy Ltd with the Registrar of Companies, NCT of Delhi & Haryana on October 7, 2020, to undertake renewable energy business,” the company stated in a regulatory filing.

In August, NTPC had received the approval from NITI Aayog and the Department of Investment and Public Asset Management to set up a wholly-owned company for its renewable energy business. The creation of the new subsidiary comes at a time when NTPC is targeting a generation of nearly 30 percent or 39 GW of its overall power capacity from renewable energy sources by 2032.

With the incorporation of the new subsidiary, it would be easier for NTPC to achieve its goal of pushing renewables in the country. The firm has planned to be a 130 GW company by 2032 with diversified fuel mix and a 600 BU (billion units per annum) firm in terms of power generation.

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The company is aiming to have 30 GW of solar and 2 GW of other renewable energy sources based on power generation capacity by 2032. Besides, it will have 5 GW of hydropower and 2 GW of nuclear energy by 2032, taking the total clean energy capacity to 39 GW. The non-fossil fuel based capacity would achieve a share of 30 percent and the thermal-based generating capacity share would be 70 percent by 2032.

The present installed capacity of NTPC Group is 62.9 GW (including 11.75 GW through JVs/subsidiaries) comprising 45 NTPC Stations and 25 Joint Venture stations (9 coal-based, 4 gas-based, 8 hydro, 1 small hydro 2 wind and 1 Solar PV). The group also has a reported ~20 GW of capacity under construction, including 5 GW of renewable energy projects.

In August, following the announcement that it had received the approval for incarnating a subsidiary for its renewable energy business, the firm had announced that it had entered into an agreement with Greenko to explore energy storage and renewable energy (RE) power supply solutions.

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The objective of the partnership is to explore the possibility of development of renewable energy-based round-the-clock, flexible and dispatchable power supply offerings based on the integration of RE sources and pumped storage projects.