NTPC to invest Rs50,000cr to add 10GW solar energy capacity by 2022

NTPC is planning to add 10GW of solar energy generation capacity by 2022, which entails an investment of around Rs50,000cr, to be funded mainly by green bonds, PTI reported.

At present, NTPC has installed renewable energy capacity of 920 MW, which includes mainly solar energy. It has formulated a long term plan to become a 130GW company by 2032 with 30 per cent 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 4GW each in 2020-21 and 2021-22.

"The company is open to any borrowing option in the market, which is economical. However, the company would mainly rely on green bonds which are offered for pure clean energy projects. The company wants to raise money through domestic green bonds," the source said.

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

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

Besides, the company will also set up solar energy projects without any long term (for 25 years) power purchase agreements (PPA) as it intends to sell the electricity to industrial as well as commercial consumers and also at energy exchanges, the surce added.

The sector regulator Central Electricity Regulatory Authority (CERC) has already approved the real time power market, which is expected to kick in by April 1, 2020.

In the real time power market, there would be 48 sessions of half an hour each in a day. This will allow consumers to get desired power supply within an hour of buying at the energy exchanges.

At present, power is traded for two hours in a day from 10AM to 12AM, where consumer can schedule delivery in a day advance.

The source also said the company intends to capitalise on real time power market, which is just three months away.

NTPC Ltd is currently trading at Rs114.40 down by Rs0.75 or 0.65% from its previous closing of Rs115.15 on the BSE.

The scrip opened at Rs115.75 and has touched a high and low of Rs115.75 and Rs114.40 respectively. So far 11,16,912 (NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs1,13,935.83cr.

About Gosip4U

Gosip4U is the digital wing of india - India's leading media and communications group with its interests spanning across country.