NTPC turns a power trader, gets renewable energy lift

NTPC, India's largest energy conglomerate with an installed generation capacity of 55,126 mw, has received licence from the Central Electricity Regulatory Commission for inter-state trading in electricity in the whole of India. However, NTPC won't be able to trade electricity generated by it, but will have to purchase and sell power involving other entities.

The licence will help NTPC to implement renewable energy projects, especially solar and wind energy, across the country. It will also enable the execution of Ministry of New and Renewable Energy's (MNRE) plan for aggressive bidding for 20,000 mw for installation of solar power projects.

NTPC has been identified as the nodal agency. As part of MNRE's plan, NTPC has selected the wind and solar power project developers for implementation of these projects and procurement of cumulative capacity of 1,150 mw wind power and 2,000 mw solar PV under "Build-Own-Operate" (B-O-O) basis with minimum project size of 50 mw, wherein competitive tariff(s) of the order of Rs 2.67 per unit for solar power and Rs 2.87 for wind power, including a trading margin of 7 paise per unit, had been discovered.

CERC has relaxed the requirement of current ratio and liquidity ratio in the public interest. However, CERC observed that NTPC is financially sound with regard to liquidity for carrying out power trading.

An NTPC spokesman told DNA Money, ''NTPC's vision is to be world's leading power company energising India's growth. The company is steadily adding to its green portfolio. NTPC is diversifying to provide reliable power and related solutions as part of its growth plan targeting 130 gw capacity by 2032 with 30% non fossil based.''

NTPC had submitted its authorised, issued, subscribed and paid-up share capital at Rs 10,000 crore, Rs 8,245.46 crore, Rs 8,245.46 crore respectively. Therefore, CERC observed that NTPC meets the required net worth and other criteria for grant of inter-state power trading licence as required under the trading licence regulations.

The CERC's ruling is important as NTPC eyes a market share of 25% in ancillary services and storage, and plans to achieve 10% of the estimated market share for the supply of electricity in e-mobility business.

Currently, NTPC through its arm NTPC Vidyut Vyapar Nigam Ltd, is engaged in short-, medium and long-term power trading, solar bundled power, cross border power trading, power swap agreement and trading of power and renewable energy certificate on power exchanges.

Power Exchange India's former managing director & CEO M G Raoot said, ''NTPC has been chosen as premier as recommended by MNRE and Solar Energy Corporation of India to facilitate the despatch of renewable energy from the various projects and handled all the related matters. This will facilitate a smooth integration of renewables into the main grid.''