NTPC Green Energy Receives a Government Boost

The Indian government Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, has granted enhanced delegation of power to NTPC Limited from the extant guidelines of delegation of power to Maharatna Central Public Sector Enterprises (CPSEs) for making investment in NTPC Green Energy Limited (NGEL).

NGEL is a subsidiary of NTPC Group, a Maharatna CPSE, responsible for renewable energy capacity addition through organic and inorganic growth. Organic growth is proposed to be done primarily through NGEL’s wholly owned subsidiary, NTPC Renewable Energy Limited (NREL).

NTPC Green Energy will use this enhanced power delegation to subsequently invest in NREL and its other JVs/subsidiaries beyond the earlier approved prescribed limit of Rs. 7,500 crore up to an amount of Rs. 20,000 crore for renewable energy capacity addition to achieve 60 GW by 2032.

The enhanced delegation given to NTPC and NGEL will facilitate the accelerated development of renewable projects in the country. This move will also play a vital role in strengthening power infrastructure and ensuring investment in providing reliable, round-the-clock electricity access across the country.

Renewable Energy projects will also generate direct and indirect employment opportunities for local people at the construction stage, as well as during the operations and maintenance.

This will provide a boost to local suppliers, local enterprises/ MSMEs and encourage entrepreneurship opportunities within the country, besides promoting employment and socio-economic development.

India has achieved a landmark in its energy transition journey by reaching 50% of its installed electricity capacity from non-fossil fuel sources, five years ahead of the target set under its Nationally Determined Contributions to the Paris Agreement.

The country is aiming to reach 500 GW of non-fossil energy capacity by 2030.

As a Central Public Sector Enterprise and the leading Power Utility of India, NTPC aims to add 60 GW of Renewable Energy Capacity by 2032, which will help the country in achieving the target and move towards the larger aim of having ‘Net Zero’ emissions by 2070. 

Incorporated in 2022, NGEL made its stock market debut in November 2024. The green company has formed curated partnerships with various State Governments and CPSUs, including with ONGC Green for RE project development. 

Earlier this year, the JV between NTPC Green Energy and ONGC Green Limited made a 100% acquisition in Ayana Renewable Power for an enterprise value of Rs 19,500 crores (~$ 2.3 billion), making this deal one of the largest acquisitions in the renewable energy sector in India. 

NGEL has a portfolio of ~32 GW RE capacity, including ~ 6 GW Operational capacity, ~17 GW Contracted/ Awarded capacity and a Pipeline of ~9 GW.