India’s NTPC eyes more thermal power capacity

Indian state-controlled utility NTPC plans to issue tenders for the construction of about 15GW of thermal power generation capacity by March 2027 to meet anticipated demand growth. Increased capacity typically boosts coal consumption.

"As part of our overall energy security plans, we are actively considering awarding thermal capacity of 15.2GW in [the] near future. This is in addition to 9.6GW thermal capacity already under construction," the company said.

Of the planned 15.2GW capacity, tenders for 10.4GW will be issued in the current April 2024-March 2025 fiscal year, NTPC said. Tenders for another 3.2GW will be issued in 2025-26, followed by 1.6GW in 2026-27, it added.

NTPC Group had an installed generation capacity of 76GW as of 31 March, up by 3.9GW from the year earlier. It plans to reach 130GW capacity by 2030 through a mix of conventional and renewable energy.

It is expanding thermal power capacity at a time when Indian private-sector utilities have largely stopped developing new coal-fired projects. Indian private-sector utilities, such as Tata Power and JSW Energy, have shifted from developing new thermal generation capacity to focusing on renewables.

NTPC also plans to step up its coal production to partly reduce a reliance on external supplies. It aims to raise coal output to 50mn t/yr over the next three years, up from 34.4mn t produced in 2023-24. It received a record 241mn t of coal in 2023-24, up by 7.6pc from a year earlier to meet rising demand. This also included 9.6mn t of imported coal, down by 34pc from a year earlier.

Government push

India's federal government plans to add about 80GW of thermal power generation capacity by 2031-32 to meet an anticipated increase in power demand, in a boost for future coal consumption.

The country's power demand has increased at an unprecedented rate because of its rapid economic growth. "India needs 24x7 power supply for growth and we are not going to compromise on its availability," India's power ministry said in November 2023. "This power cannot be achieved by renewable energy sources alone. Since nuclear capacity cannot be added at a rapid pace, we need to add coal-based thermal capacity." The ministry urged the power industry to plan for capacity additions over the next 5-7 years.

India will need to increase its coal-fired power generation capacity to 259.6GW by March 2032 from the current 211GW, according to the country's national electricity plan (NEP). The NEP, announced by the Central Electricity Authority (CEA) in May 2023, said India will need to raise its current coal-fired capacity to meet the country's projected peak electricity demand of 2,473.8TWh in 2031-32. The CEA also projects coal-fired capacity rising to 235.1GW by 2026-27.

By Ajay Modi