NTPC, in its corporate disclosure to the BSE, declared that it received the approval of NITI Aayog and the Department of Investment and Public Asset Management (DIPAM) to set up a wholly-owned company for its renewable energy business.
The wholly-owned subsidiary- NTPC Renewable Energy Business- will be incorporated under the provisions of the Companies Act, 2013.
The disclosure to start a renewable subsidiary is crucial, even though the state-owned power company is generating 1.1 GW of renewable energy, NTPC has plans to push installations to 32 GW by 2032, which will constitute 24% of its power projects portfolio. According to NTPC’s latest investor presentation, 13 renewable stations owned by the company are generating 928 MW, while four renewable stations run by joint ventures and subsidiaries are generating 142 MW.
The government undertaking has also ventured into electric mobility besides its renewable pursuits. Last year, NTPC invited vendors to enlist for the infrastructure development of electric vehicle charging stations.
The new subsidiary would be a shot in the arm for NTPC, which aims to generate 10 GW of renewable power by 2022, and is essential for India’s goal of generating 175 GW of clean energy by the same year.
Notably, the Oil and Natural Gas Corporation (ONGC) recently announced its plans to set up a renewable joint venture company with NTPC Limited. According to the pact, ONGC and NTPC Limited intend to explore and set up offshore wind projects, among other renewable power assets in India and abroad.
Recently, NTPC invited bids from engineering, procurement, and construction contractors with land for the development of up to 1,070 MW of solar projects in Rajasthan. Besides these, NTPC has also floated a request for proposal (RfS) to acquire 1 GW of operational solar projects across India.
According to Mercom’s India Solar Tracker, NTPC has 875 MW of large-scale solar projects in operation, with about 2.3 GW of capacity currently under development.
Image credit: NTPC