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	<img align="" alt="Solar power" class="imgCont" height="464" src="http://bsmedia.business-standard.com/_media/bs/img/article/2017-05/23/full/1495486237-3389.jpg" style="border: 1px solid #DDD; margin-right: 10px; padding: 1px; float: left; z-index: 0;" title="Solar power" width="620" />
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		India&rsquo;s largest power generating utility, NTPC Ltd, is driving the energy transition from coal to solar. Apart from building its own portfolio of renewables, the maharatna utility is emerging as the key off-taker of solar power projects by private developers whose aggressive bids backed by overseas investments have made solar tariff cheaper than coal-fired generation.</div>
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		NTPC&rsquo;s role as the key off-taker of solar power is contributing significantly to the historic low soar tariffs. &ldquo;The record low levelised tariff of Rs 3.15 per unit achieved at the Kadapa solar auction in April 2017 was achieved to a great extent because NTPC was the off-taker. As a state-owned entity with a strong balance sheet, NTPC is the strongest renewables power off-taker in India, and its de-risking presence is conducive to securing longer-duration loans at the most competitive borrowing rates, which in turn lowers tariffs. Kadapa was the last of 3 Gw of solar tenders placed by NTPC,&rdquo; says a report by the US-based Institute for Energy Economics & Financial Analysis (IEEFA).</div>
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		The report notes NTPC maintained a five-year (2011-12 to 2015-16) average Ebitda (earnings before interest, taxes, depreciation and amortisation) of 24.5 per cent and an average return on equity of 13.4 per cent. The company&rsquo;s strong balance sheet is in contrast to alternative off-takers such as state distribution companies, meaning that NTPC&rsquo;s financial de-risking presence helps private companies achieve their aggressively low tariffs. NTPC is aiming to become the off-taker of 15 Gw of renewable generation capacity in addition to its target of installing 10 Gw of its own capacity, the report noted.</div>
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		&ldquo;Despite its deep historical connection to coal-fired electricity generation technology, NTPC has recently moved to the forefront of India&rsquo;s energy transition and stands to be the country&rsquo;s key new energy enabler. NTPC stands to gain from an acceleration of its renewable energy roll-out and further facilitation of the Indian government&rsquo;s ambitious renewable energy targets&rdquo;, said Tim Buckley, lead author of the report and IEEFA&rsquo;s director of energy finance studies, Australasia.</div>
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		An NTPC spokesperson refused a comment on the findings. NTPC&rsquo;s involvement as an off-taker helped Engie&rsquo;s Indian arm Solairedirect bid Rs 3.15 per unit for the Kadapa solar project in Andhra Pradesh, the lowest levelised tariff yet achieved in India. Another recent announcement also from April 2017, was for a 118 Mw solar project from Azure Power and Hareon Solar &mdash; here again, NTPC is the off-taker. NTPC&rsquo;s underwriting of payment for such projects improves bankability, facilitating further renewables tariff reductions as clean generation technology leaves coal-fired power further behind on cost.</div>
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		Including off-take, NTPC is responsible for 3600 Mw of the current 12,000 Mw of solar capacity in India. Despite its strength in the traditional coal-fired generation, NTPC is now rapidly rolling out in-house, utility-scale solar projects, and it is signing power purchase agreements for off-take of solar power from private solar operators. As on May 1, NTPC had a total of 620 Mw of in-house solar capacity. In addition to seven projects with a capacity of 15 Mw each or less, the NTPC Bhadla solar project has a currently installed capacity of 260 Mw, the Rajgarh project has 50 Mw of capacity and the Ananthapuram solar park project has a capacity of 250 Mw.</div>
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		For the first time in India in 2016-17, total renewable energy capacity additions matched thermal capacity additions. The rate of thermal capacity additions declined 50 per cent from the previous fiscal. NTPC has 15,000 Mw of coal-fired capacity in development but plans to retire 11,000 Mw of older capacity.</div>
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Its role in this area is contributing significantly to historic lows in power tariffs

NTPC emerges as key off-taker of private solar power projects

Its role in this area is contributing significantly to historic lows in power tariffs