A year ago NTPC announced an ambitious target for achieving generation capacity of 128,000 megawatts (MW) by 2030 while it also decided to crease the mix of renewable power capacity and reduce the share of thermal power. The state-run power giant aimed to add 10, 000 MW of renewable capacity in the next four years.

Considering the pace of new renewable assets commissioned so far, reaching the target seems a challenge for NTPC. Company’s current renewable capacity stands at around 845 MW with most of it being solar. In the first quarter ended June, 30, NTPC has commissioned 16MW wind farm at Rojmal Wind Power Project and solar capacity of total 245 MW at Mandsaur Power Project, the company noted in the regulatory filing on Saturday.

Poor record

According to market analysts, NTPC shows rather poor track record on achieving its commissioning guidance, not only in renewable segment, but in the thermal as well. In FY17 it commissioned around 3000 MW of coal capacity against planned 4,900 MW. The totalinstalled capacity of NTPC is 51,635 MW as on June, 30, 2017 compared to 47,178 MW a year ago. Out of this, 38,755 MW is thermal capacity.

Lacking clarity

There is no clarity on company’s plan for expending its renewable capacity as the amount of projects in the pipeline remains negligent. The guidance for coal-based capacity additions in the current fiscal is 5100 MW of coal-based capacity addition. However, considering the disruption in the power industry caused by solar and wind power prices falling sharply, and given the overcapacity existing in the system coupled with low power demand, the commissioning of new thermal capacities could be delayed, analysts note. Meanwhile, NTPC has registered slight dip in commercial power generation in quarter ended June, 30 compared to the same period a year ago,according to company’s performance highlights.

Declining load factor

The all-India thermal plant load factor (PLF) declined to 62.49 per cent compared to 63,19 per cent a year ago. This is higher than average PLF for coal and lignite-based power plants that has reduced from 64 per cent in May to 57.4 per cent in June, according to India Ratings latest report.

At the annual general meeting held on Saturday, NTPC Board approved fresh fund raising up to the tune of ₹15,000 crore through non-convertible debentures.

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