NTPC Steps In to Buy Unsold Green Energy, Boosting Renewable Power Absorption

As a strategic step to address the increasing problem of unsold renewable power, NTPC has plans to buy green power from struggling projects unable to secure state-level power purchase agreements (PPAs). The move is to soak up idle renewable energy capacity that goes unsold because of distribution companies' hesitation or delay in signing PPAs despite increasing renewable purchase obligations.

The stranded green power problem has increased with more than 9 GW of renewable capacity, comprising solar, wind-solar hybrid, and battery storage projects, already without offtakers. Around 650 MW of the unsold inventory belongs to NTPC Renewable Energy's own projects. State discoms' hesitation in signing PPAs is also due to tariff reductions and payment uncertainty despite the government insisting on rising renewable energy targets—29.92% for 2024-25 and 33.01% for 2025-26.

By stepping into the role of a buyer, NTPC will give a stable market to these renewable projects so that clean energy is not left unused and India's target of 500 GW renewable capacity by 2030 is supported. This is also in line with NTPC's overall thrust of growing its renewable portfolio and enabling the transition of the country.

This growth is likely to stabilize the renewable energy sector, invite more investments, and assist discoms in fulfilling their renewable commitments better.

Source: Mercom India, NTPC Press Releases, Moneycontrol