Greenko and NTPC to partner for supplying on-demand green energy

New Delhi: In what may help bring down the electricity price for consumers and provide on-demand power from wind and solar projects, Hyderabad-based Greenko Energies Pvt Ltd plans to partner with state run NTPC Ltd to develop ‘round-the-clock’ power supply.

This assumes significance given that solar and wind are infirm sources of energy, with storage holding the key to providing on-demand electricity from wind and solar projects. Till now, electricity distribution companies (discoms) had the option to procure power either from clean energy projects or coal and gas fuelled projects, with each having their own pros and cons, in terms of reliability and flexibility.

Greenko is among India’s largest green energy developers with a 6.4 gigawatt (GW) portfolio and is building power storage projects with total capacity of 7.2 GW across six states in India. While NTPC runs the largest fleet of coal based capacity in India, Greenko’ integrated renewable energy assets with storage, will help it provide clean energy during peak grid demand.

According to GIC Holdings Pte. Ltd and Abu Dhabi Investment Authority (ADIA) backed Greenko, the pumped hydro storage projects, “shall be one of the lowest cost storage solutions at around 85 USD/ MWh compared to battery storage systems, currently being imported primarily from China, at around 200 USD/ MWh (forecasted to reached 100 USD/ MWh by 2030) with limited life cycles.”

This comes at a time when India’s largest power generation utility NTPC is planning a green energy push and is looking to acquire at least 1000 mega watt (MW) of operational solar power projects, as part of its strategy to have a 32 GW clean energy portfolio by 2032. NTPC currently has a 2,298 MW renewable energy projects under construction.

“The value proposition of the potential offering will be to meet the evolving bespoke requirements of Discoms and other power consumers in India in real-time. Affordable energy storage is critical to the sustained growth of renewables, grid balancing and address limited generation flexibility in the Indian energy market,” the Greenko statement said.

This comes in the backdrop of India running what will become the world’s largest clean energy programme with an aim of having 175 GW of clean energy capacity by 2022 as part of its global climate change commitments. Green energy projects now account for more than a fifth of India’s installed power generation capacity of 370 GW.

“Greenko Energies Pvt Ltd (Greenko) and NTPC Vidyut Vyapar Nigam Ltd. (NVVN), a wholly owned subsidiary of NTPC Limited – India’s largest power generation with generation fleet in excess of 60 GW and transitioning into Renewables, have entered into an MOU with an intent to explore possibility of development of Renewable Energy (RE) based RTC, flexible and despatchable power supply offering based on integration of RE sources and Pumped Storage projects,” Greenko statement said.

This also comes at a time, when India’ solar power tariffs have touched a record low of ₹2.36 per unit at an auction conducted by state-run Solar Energy Corporation of India Ltd. Falling clean power tariffs putting an already awarded 16.8 GW solar and wind energy capacity in limbo, Mint reported earlier. Fund starved state electricity distribution companies (discoms) are unwilling to sign contracts with intermediary procurers such as SECI, for these previously awarded projects at a comparatively higher tariff.