NTPC Bets On Solar To Power Renewable Energy Biz

by Vinaya HS on August 18, 2017

in Finance

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The National Thermal Power Corporation, NTPC, is the country’s largest producer of the thermal power. NTPC aims to concentrate more on the renewable energy in the years to come and also wishes to increase its presence in the arena of solar power generation. The corporation believes this is their bit towards a better planet and a greener world.

The chairman and managing director of NTPC, Gurdeep Singh, has expressed in the business news that the corporation is redefining their strategy and their business plan. As they move forward, the capacity addition of the corporation will be less in the coal and will be more in renewable energy space.

The company is clearly going to focus on the solar photovoltaic plants and not on the windmills for the reason that the prices of solar equipment that includes the prices of the photovoltaic plates have reduced considerably. This has made the solar power more reasonable and much more affordable as compared to the windmills.

As the legal news India confirms, this year there was an intense bidding for the solar power projects. The bidding was recorded as low as the bid of Rs 2.44 per kilowatt hour or kwH for Bhadla Solar Park in Rajasthan. Projecting the future prices, NTPC anticipates that the price of the solar power per kilowatt hour will be somewhere between Rs 3 to Rs 3.25 kwH. This increase in the price of the solar power per kilowatt is due to the impact of the new taxation structure Goods and Services Tax or GST on solar power generation. GST is expected to increase the rate of solar power marginally.

Gurdeep Singh further pointed out that they are contemplating to add renewable as early as possible which is up to 25 gigawatt (gw) by 2025. The company has already added 4 gw currently. NTPC has already opened tenders for 10 gw of renewable power projects.

NTPC has been assigned to develop 15 gw solar power through National Solar Mission’s second phase in three tranches between 2014-15 to 2018-19. The first tranche constitutes to about 3 gw or 3,000 megawatt and the second tranches consists of 5 gw and the last tranche consisting of the 7 gw. Talking about the first tranche, 1,380 mw of solar power has already been commissioned.

Along with this, the thermal giant is also considering on the co-firing biomass with coal for electricity generation. It is not only the part of the wish list of the NTPC, but the corporation is extremely aggressive on its work regarding the development in the carbon-free power.

The corporation is considering to install electric vehicle charging stations in the Metro cities. After already commissioning two charging stations for electric vehicle in the city of Delhi and Noida, the NTPC is planning to add 20 more soon. The corporation wishes to set up stations in New Delhi Municipal Corporation area initially and later expand its business across the country. The corporation is in discussion with the different state governments for the fulfillment.

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