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IEEFA India: NTPC is leading electricity sector transition

September 12, 2019

September 12, 2019 (IEEFA India) – NTPC, the largest thermal power generation company in India, is a transition leader in India’s electricity sector, a new IEEFA briefing note has found.

Entitled NTPC spearheads electricity sector transition in India, the briefing note reviews NTPC’ progress in meeting the Government of India’s long-term objectives of adding more renewables to its energy pipeline.

Author of the note Kashish Shah, Research Analyst with the Institute for Energy Economics and Financial Analysis (IEEFA), recently attended NTPC’s annual analysts and investors meeting for FY2018/19 in Mumbai.

He found NTPC’s long-term and impressive target of generating some 40 gigawatts (GW) of renewable energy (30% of its total planned capacity of 130GW) by 2032 reinforced with the company’s announcement of a 5GW of ultra-mega solar park for Kutch, Gujarat.

“NTPC is playing a key facilitating role in India’s overall pivot towards renewable energies, in line with the Government’s clean energy objectives for the country,” says Shah.

“They are also showing leadership in reducing polluting toxic emissions through their proactive flue gas desulphurisation (FGD) retrofitting of thermal coal plants.

“NTPC revealed it had reduced by more than 90% imports of expensive coal, reflecting the Indian government’s long-term aim of zero thermal coal imports.

“And by vertically integrating its business to rely on its own coal mining capacity, the company has experienced lower coal transportation costs, while the proposed blending of its supply of thermal power with cheaper renewable energy power has been one of the key contributing factors for NTPC’s profitability.”

IEEFA finds NTPC’s profitability is exhibited in its sustained net positive gap between average revenue realised versus average costs of supply per unit of electricity.

“While the company continues to rely almost entirely on domestic thermal coal, its healthy pivot towards renewables and its proactive approach on emission control implementation will not only benefit the country in curbing air pollution, it will also deliver economic benefits going forward for its thermal assets,” says Shah.

IEEFA finds NTPC’s target of 40GW of renewables (including hydro) by 2032 represents a material component of India’s overall renewable target, driving both deflation and necessary progressive decarbonisation.

While it will continue to deliver thermal power for decades to come, NTPC’s ongoing strategic shift to concurrently expand into renewable energy is timely and makes the company a key facilitator of Prime Minister Narendra Modi’s ambitious goal of 523GW of renewables and hydro by 2030.

“NTPC is showing leadership in this sector, providing an example for others to follow,” says Shah.

Read the briefing note: NTPC spearheads electricity sector transition in India

Media contact: Kate Finlayson ([email protected]) +61 418 254 237

Author contact: Kashish Shah ([email protected])


The Institute for Energy Economics and Financial Analysis (IEEFA) conducts global research and analyses on financial and economic issues related to energy and the environment. The institute’s mission is to accelerate the transition to a diverse, sustainable and profitable energy economy.

Kashish Shah

Kashish Shah is a Senior Research Analyst with Wood Mackenzie. Previously,

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