NTPC to invest Rs. 50,000 cr to add 10GW Solar Energy Capacity by 2022
State-owned power giant NTPC Ltd. is planning to add 10 GW (gigawatt) of solar energy generation capacity by 2022. The project would entail an investment of around Rs.50,000 crore which will be funded mainly by green bonds. NTPC’s plans to add 10GW solar energy capacity assumes significance in view of country’s ambitious target of having 175GW of clean energy by 2022.
For borrowing option, the company would mainly rely on Green Bonds which are offered for pure clean energy projects. It wants to raise money through domestic as well as overseas green bonds.
Currently, NTPC has installed renewable energy capacity of 920 MW (Megawatt), which includes mainly solar energy. It has also formulated a long-term plan to become a 130GW company by 2032 with 30% non-fossil fuel or renewable energy capacity. NTPC will be completing tendering of 2,300 MW of solar energy capacity by end of this fiscal year (2019-2020), and thereafter it has planned to add 4GW each in 2020-21 and 2021-22.
As NTPC intends to sell electricity to industrial and commercial consumers as well as at energy exchanges, it will be setting up solar energy projects without any long-term (for 25 years) power purchase agreements (PPA). Central Electricity Regulatory Authority (CERC), the power sector regulator has already approved real-time power market, which is expected to kick in by 1 April 2020.
NTPC would also set up some of its solar energy projects under scheme where it gets viability gap funding (VGF) to keep the tariff below Rs.3/unit level.
About NTPC Limited
It was formerly known as National Thermal Power Corporation Limited. It is an Indian Public Sector Undertaking (PSU), engaged in business of electricity generation and allied activities. It was founded in 1975 and was incorporated under Companies Act 1956.
Category: Economy & Banking Current Affairs