In line with India’s goal to add 80 GW of thermal power capacity by 2030, NTPC Ltd. plans to develop 26 GW of this capacity through brownfield expansions near coal mines, according to a senior company executive.
Gurdeep Singh, NTPC’s Chairman and Managing Director, stated that attaching new power projects to existing pit-head coal mines or placing them closer to these mines will be more cost-effective compared to starting new greenfield projects.
Singh outlined that the expected cost of these projects, adjusted for inflation, will range from ₹10 to ₹11 crore per megawatt, with tariffs projected between ₹3.5 and ₹5 per kilowatt-hour. All these projects will be developed on a regulated cost-plus basis, and none will operate on a merchant power basis.
Rupesh Sankhe, Vice President and Power Analyst at Elara Securities, noted that NTPC’s regulated equity base is anticipated to grow with the addition of the 26 GW thermal capacity. He added that NTPC’s expanding renewable energy pipeline and ventures into green hydrogen and pumped hydro storage are expected to drive future growth.
Despite India’s commitment to renewable energy and plans to add 50 GW of renewable capacity by 2030, the country will still need about 80 GW of thermal power capacity by 2032 to meet the rising demand, which is increasing by 7-8% annually.
Crisil Ratings Ltd. highlighted that thermal power will be essential to meet nearly half of the growing annual demand in the near to medium term due to the intermittent nature of renewable sources and the need for a stable base load. Singh mentioned that decisions on whether to continue with brownfield or shift to greenfield projects will be reviewed if NTPC pursues capacities beyond the planned 26 GW.
Construction for 9.5 GW of this capacity has already begun, with 8 GW currently in the tendering stage, and the remaining 8.5 GW expected to be awarded within the next three months. NTPC currently has an installed capacity of 76,000 MW, including 2,925 MW from hydro and 2,906 MW from solar energy.
