NTPC to invest ₹50,000 cr. for 10 GW solar capacity


Power major eyes 2022 deadline; green bonds to fund plans

State-owned power giant NTPC is planning to add 10 GW of solar energy generation capacity by 2022, which entails an investment of around ₹50,000 crore, to be funded mainly by green bonds, a source has said.

At present, NTPC has installed renewable energy capacity of 920 MW, which constitutes mainly solar energy. It has formulated a long-term plan to become a 130 GW company by 2032 with 30% non-fossil fuel or renewable energy capacity.

“The company will complete tendering of 2,300 MW of solar energy capacity by the end of this fiscal. Thereafter, it has planned to add 4 GW each in 2020-21 and 2021-22,” the source said.

The source added that NTPC was “open to any borrowing option in the market, which is economical. However, it would mainly rely on green bonds which are offered for pure clean energy projects. The company wants to raise money through domestic as well as overseas green bonds.”

NTPC’s plans to add 10 GW solar energy capacity assume significance in view of India’s ambitious target of having 175 GW of clean energy by 2022.

The source said that the power major would also set up some of its solar energy projects under a scheme where it gets viability gap funding to keep the tariff below the ₹3-per-unit level.

Besides, the company will also set up solar energy projects without long-term (25 years) power purchase agreements as it aims to sell the electricity to industrial as well as commercial consumers and also at energy exchanges, the source said.

The Central Electricity Regulatory Authority has already approved the real-time power market, which is expected to kick in by April 1, 2020. There would be 48 sessions of half an hour each in a day, to allow consumers to get the desired power supply within an hour of buying at the exchanges. Power is now traded for two hours in a day from 10 a.m. to 12 a.m., where a consumer can schedule delivery a day in advance.

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Printable version | Jan 24, 2020 6:51:12 PM |

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