In a recent interview, Gurdeep Singh, CMD of NTPC Limited, discussed the evolving landscape of India’s power sector, emphasizing the significant transformation driven by increasing demand, government reforms, and a strong push towards non-conventional energy sources. Currently, India boasts over 452 GW of installed power capacity, making it the third-largest producer and consumer of electricity globally. The demand for green power, green chemicals, and energy storage systems is expected to rise rapidly, presenting substantial opportunities. However, challenges such as seasonality, intermittent availability, and storage limitations must be addressed through policy initiatives and technological advancements.
Singh highlighted that India’s electricity demand is poised for significant growth, correlating with the country’s economic expansion. As India aims to become a $30 trillion economy by 2047, electricity demand is projected to reach 5,651 BUs, with peak demand expected to hit 335 GW by 2030. This growth will be driven by urbanization and the electrification of various sectors. To meet the ambitious target of installing 500 GW of non-fossil energy by 2030, an average annual capacity addition of 40-50 GW is required, creating vast opportunities for capacity expansion.
Regarding coal-based power generation, Singh noted its crucial role in meeting India’s energy demands, especially during periods of rapid economic growth. NTPC has successfully catered to increased demand, achieving a generation of 422 BUs and maintaining a market share of over 24% despite holding only 17% of the installed capacity. While coal remains a significant energy source, its role is evolving to support the integration of renewables into the grid, necessitating flexible operations to manage variable loads.
On gas-based generation, Singh acknowledged the challenges posed by limited availability and high costs, which have led to low utilization of gas assets. However, he emphasized that gas will play a vital role in providing peaking and flexible generation to accommodate growing renewable capacities, serving as a transition fuel in the decarbonization journey of the power sector for at least the next three years.
Singh identified key challenges in meeting renewable energy targets, including the cost of capital, equipment, land availability, and connectivity for storage capacity. He expressed confidence that the Government of India’s initiatives and policy interventions would effectively address these challenges, enabling the country to meet its renewable energy targets ahead of schedule.
NTPC is actively pursuing green hydrogen initiatives, including the commissioning of India’s first green hydrogen blending facility in Gujarat and projects in Leh and Greater Noida. The company aims to expand its renewable energy portfolio, enhance operational efficiency, and diversify into nuclear and green hydrogen solutions. In the long term, NTPC seeks to lead in clean energy transitions while exploring international market opportunities, all while maintaining a commitment to providing reliable and environmentally friendly power solutions. Credits POWER LINE.
