NTPC is set to increase its thermal power capacity by 26 gigawatts by 2030 as part of the government’s strategy to augment the country’s thermal power capacity by 80 gigawatts by the end of the decade.

What Happened: The government’s plan to increase thermal power capacity will see NTPC developing an additional 26 gigawatts as brownfield projects near coal mines, NDTV Profit reported.

These projects will be more cost-effective than establishing greenfield projects. NTPC Chairman and Managing Director Gurdeep Singh said the inflation-adjusted cost of these projects would be around ₹10 crore–₹11 crore per megawatt, with tariffs ranging from ₹3.5–₹5 per kilowatt-hour.

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Analysts predict that the addition of 26 gigawatts of thermal capacity will increase NTPC’s regulated equity base. Moreover, the company’s expansion into renewable energy and new business sectors such as green hydrogen and pumped hydro storage could drive growth.

Despite India’s focus on renewable energy, the country will need at least 80 gigawatts of thermal power capacity by 2032 to meet growing power demand, which is goes up at 7%–8% annually. Crisil Ratings suggested that thermal power will be crucial for meeting nearly half of this growing demand in the near to medium term.

Construction for a 9.5-gigawatt capacity has already begun, while around 8 gigawatts is under tendering and the remaining 8.5 gigawatts will be awarded in the next three months, Singh added.

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