India is anticipated to experience a significant increase in power demand, driven mainly by the expanding real estate and transport sectors alongside economic and population growth. The Central Electricity Authority (CEA) projects that India’s power needs will rise to 817 GW by 2030.
According to the CEA, renewable energy sources such as solar, wind, small hydro, pumped hydro, and biomass are expected to constitute 31% of the power generation mix by 2030, up from the current 12%.
In response to this growing demand, the Indian government has set a target of achieving 500 GW of renewable energy capacity by 2030. To support this initiative, the Central Electricity Regulatory Commission (CERC) has extended the waiver of Inter-State Transmission System (ISTS) charges for solar and wind energy projects commissioned until June 30, 2025.
The government has allocated a total capacity of 39,600 MW for domestic Solar PV module manufacturing to 11 companies under the Production Linked Incentive Scheme for High-Efficiency Solar PV Modules (Tranche-II), with a total outlay of Rs. 14,007 Crores.
Further, Manufacturing capacities of 7,400 MW, 16,800 MW, and 15,400 MW are expected to become operational by October 2024, April 2025, and April 2026 respectively. Tranche-II is anticipated to attract an investment of Rs. 93,041 crore.
In India, public sector companies are accelerating their power generation capacity using non-fossil fuels to meet the rising energy demand sustainably. Many companies are shifting focus from fossil fuels to non-fossil fuels.
Several such companies have initiated the construction of solar power plants totaling 10,000 MW. These projects are anticipated to be completed between 2025 and 2026.
NTPC Ltd
NTPC, an energy company deeply entrenched in the power generation sector, operates across the entire value chain. It produces electricity through various means such as coal, gas, liquid fuel, hydro, and renewables, supplying it wholesale to state power utilities.
The company also offers consultancy services, e-mobility solutions, project management, and supervision. As of now, the installed capacity of NTPC Group totals 73,958 MW.
One of its subsidiaries, NTPC Renewable Energy Ltd (NTPCREL), is actively engaged in significant solar, wind, and hybrid projects nationwide, including the development of gigawatt-scale renewable energy parks.
Currently, NTPC-REL is executing 17 projects with a combined capacity exceeding 6,000 MW, contributing to the group’s total renewable energy operational capacity of 3,448 MW.
NTPC has also set ambitious goals to achieve 60 GW of renewable energy capacity by 2032. In pursuit of this target, the company plans a capital expenditure of ₹15,000-20,000 crore in the green energy sector by 2025.
Additionally, NTPC intends to initiate orders for an extra 10 GW of renewable energy projects within the next 10-12 months, with a significant portion expected to be operational by 2026.
On June 26, on the National Stock Exchange, NTPC Ltd. shares were trading at ₹362 per share, reflecting a 0.43 percent decrease from the previous closing price. The company, classified as a large-cap entity, boasts a substantial market capitalization of ₹3,47,480 crores.
Coal India Ltd
Coal India Limited (CIL) has mapped out an extensive plan to foray into solar power generation, with a target to reach 3,000 MW capacity by 2025-26.
Coal India has detailed the award of contracts for 379 MW of solar projects to be executed across its various subsidiaries, alongside a significant 100 MW solar plant dedicated to Gujarat Urja Vikas Nigam Limited (GUVNL).
Coal India, a fossil fuel producer, has aligned itself and is committed to becoming a Net Zero Energy Company and is in the process of implementing a 3 GW solar power program by 2025-26.
A total of 398.8 MW capacity will be developed by the end of 2024, 1,443 MW in FY2025, and 1,158 MW in FY2026.
The company has awarded contracts for the execution of 379 MW SPV Solar Projects across its subsidiaries, including Mahanadi Coalfields Limited (MCL), Eastern Coalfields Limited (ECL), Northern Coalfields Limited (NCL), South Eastern Coalfields Limited (SECL), Western Coalfields Limited (WCL), Bharat Coking Coal Limited (BCCL), Central Coalfields Limited (CCL), and GUVNL.
On Wednesday, Coal India Ltd. shares were trading at ₹468 per share, up 0.27 percent from the previous close price on the National Stock Exchange. The stock belongs to the large-cap category, with a market capitalization of ₹2,88,362 crores.
SJVN Ltd
According to the Central Electricity Authority, SJVN Ltd. has 15 different projects under construction. SJVN is set to complete 1,475 megawatts of solar projects in the first quarter of fiscal 2025.
The company plans to execute a total of 3,503 megawatts during the current fiscal year, as well as 100 megawatts of solar projects by the second quarter of fiscal 2026.
Out of 3,503 MW solar projects, the first and fourth quarters are expected to see the most execution. While the first quarter will see capacity execution of 1,475 megawatts, the fourth quarter is slated to see 1,600 megawatts of execution.
As of December 2023, SJVN had 54,370 megawatts under its total renewable energy portfolio. The 3,503-megawatt projects are in addition to those awarded by the Solar Energy Corporation of India or under the Ultra Mega Renewable Energy Power Parks scheme.
SJVN’s solar projects that are expected to be completed in the first quarter of fiscal 2025 include the Bikaner Solar Power project, the Floating Solar Park 100 MW Solar Power Project, the GUVNL Phase-13,100 MW Solar Power Project, and the GUVNL Phase-14,260 MW Solar Power Project.
The Bikaner Solar Power project, which is developed by SJVN Green Energy Ltd. under the CPSU Scheme Phase-II, has the highest capacity of 1,000 megawatts currently under construction and is slated to be completed by June 30, 2024.
On Wednesday, SJVN Ltd. shares were trading at ₹129 per share, down 0.15 percent from the previous close price on the National Stock Exchange. The stock belongs to the large-cap category, with a market capitalization of ₹50,694 crores.
NHPC Ltd
As per the company report, NHPC expects to complete the proposed 1,200 MW solar power project, entailing an investment of ₹796.96 crore, in Uttar Pradesh in two years.
NHPC is developing its solar plans through its subsidiary Bundelkhand Saur Urja Ltd., with an investment of ₹796.96 crore for a solar plant at Jalaun Ultra Renewable Energy Power Park in Orai, Jalaun district, Uttar Pradesh. The park is proposed to be constructed within 24 months.
Recently, NHPC Ltd. received an order to build a 200 MW solar plant in the Kachchh district of Gujarat. The new power generation capacity will be part of a 1,125 MW renewable energy park at Khavda, owned by the Gujarat State Electricity Corporation Ltd. (GSECL).
NHPC is also developing a 300 MW grid-connected solar PV project in Rajasthan with an investment of nearly ₹1,700 crore.
Overall, NHPC aims to become a 23 GW company by 2032 by adding 16 GW of renewable energy in the next 10 years and a 50 GW company by 2047 by adding 43 GW of renewable energy in the next 25 years. The company plans to undertake investments of ₹800 billion by 2032 and ₹3.6 trillion by 2047.
On Wednesday, NHPC Ltd. shares were trading at ₹99.91 per share, up 0.030 percent from the previous close price on the National Stock Exchange. The stock belongs to the large-cap category, with a market capitalization of ₹1,00,651 crores.
Written by Omkar Chitnis
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