NTPC Ltd will invest around $3 billion in setting up 7-8 GW of renewable energy capacity every year to meet its 2031 target, CMD Gurdeep Singh said on Tuesday.

It also plans to take its new renewable energy arm — NTPC Renewable Energy Ltd — public through an initial public offering.

“We are taking all steps possible to add 7 to 8 GW per year which should not be a very uphill task,” Singh said at the BloombergNEF Summit.

“This should be $3 billion annually, which is what we have been raising already,” he said. “We will try all options, not only pure debt, but bonds, divesting our stake, going forward, and may be blended financing.”

NTPC commissions 910 MW capacity at Barauni, Tanda

NTPC on Sunday announced a target, for 2032, to install 60 GW of renewable energy capacity and reduce its net energy intensity by 10 per cent.

The country’s largest coal-based electricity generator had earlier planned to have a minimum of 32GW renewable capacity by 2032. NTPC has a total installed generation capacity of 65.8GW, over three-fourths of which is in coal-based power plants.

Asset monetisation

The company is keen to monetise its renewable assets. “We have been raising funds from the domestic and overseas markets in debt and bonds. Going forward, we will be seeing if we can also create and flip assets. So it’s not necessary that we will be owning the 60GW but our focus is on creating the 60 GW capacity,” Singh said.

NTPC targets 60 GW renewable energy capacity by 2032

NTPC will also take its new renewable energy arm public and scout for JVs with State governments, he added. “We have already established NTPC Renewable Company. We are seeing how soon we can ramp up capacity into this and soon we will be going public for this company. We are also looking at how we can join hands with State governments to have joint ventures and put up capacity there.”

However, in the spirit of “just and fair transition”, the cost of capital should be lowered for developing countries to match the levels of the developed world, Singh said.