Nuclear energy is among the non-fossil fuel-based energy that NTPC Ltd. looks to tap in the coming period. The top brass of India's largest state-run power producer sees its plans in this sector taking shape in 2032.
"In terms of nuclear energy, we are just at the beginning. By 2032, we expect to build a capacity of 2 gigawatts," Gurdeep Singh, chairperson and managing director of NTPC, told NDTV Profit.
NTPC is also in discussion with the Bhabha Atomic Research Centre and the Department of Atomic Energy on "how to participate in the small modular reactors", Singh added. "This will be very capital intensive, very technological, and more than that, there will be many regulations that need to be taken care of."
NTPC Green Energy Ltd., which is the company's initial public offering-bound renewable energy arm, will focus on solar and wind energy, along with green hydrogen derivatives.
For nuclear energy, NTPC will launch a new subsidiary, NTPC Nuclear Energy Corp., Singh said. However, the first project under the nuclear segment has already been initiated in a joint venture with the state-run Nuclear Power Corp.
Over the next few years, the company will keep expanding the capacity of renewable energy, Singh said, but traditional sources of energy will play a role till this period of transition.
"Transition towards renewable (energy) is inevitable, but the pace of transition will decide on the dependence on traditional sources of energy. We have to make sure we meet the requirement of power for 24 hours on all days," he pointed out.
Currently, NTPC has 76 GW of total energy capacity. Out of this, 62 GW is based on coal, 6.5 GW based on gas, and another 3.7–3.8 GW is based on hydrogen, he said.
There is no gas plant under construction, but there are coal plants under construction that will add 26 GW of capacity by 2032. As per this calculation, "we should have around 88 GW of coal capacity... This includes the capacity of NTPC and its joint ventures", Singh said.
For renewable energy, the target is to achieve 60 GW of capacity by 2032. "But with storage capacity we can achieve that before only. Perhaps, by 2032, we can reach 70–80 GW," he noted.
NTPC Director of Finance Jaikumar Srinivasan, while commenting on the company's expansion plans, said "capital would not be an issue". NTPC Green Energy has a "self-revenue generating model", and "NTPC as the parent entity is there to back up if there is large cash flow needed", he added.
The IPO of NTPC Green Energy to raise Rs 10,000 crore will be launched on Nov. 19. The proceeds of the IPO, which comprises only a fresh issue, will be used by the company to accelerate its capacity addition.
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