NTPC builds more renewable energy capacity than coal for first time

Energy giant shifts focus from thermal power to solar, wind

For the first time, India's largest power producer NTPC Ltd is building more renewable energy (RE) projects than coal-fired power plants, known for their carbon intensity. 

The trend highlights how solar and wind energy projects have become mainstream in the portfolio of energy giants traditionally known for their heavy reliance on thermal power segment. 

It also marks a turning point in the energy sector’s transition, which may accelerate in the future if the cost of battery storage needed for round-the-clock clean energy supply continues to decline, according to experts. Cost-effective battery storage resolves intermittency, the biggest weakness of renewable power. 

NTPC Ltd changed its name from the earlier National Thermal Power Corporation over a decade ago to highlight the shift in focus toward green energy. 

Data shared by the state-owned company to investors on Monday, and made public on Tuesday, shows its under-construction RE capacity reached 16.4 Gigawatt (Gw) at the end of June 2026, surpassing the 15.7 Gw capacity of under-construction coal-based power projects. 

While NTPC’s under construction coal-based capacity has dropped consistently from a high of 17.3 Gw at the end of July 2025, the capacity of renewable energy projects zoomed 24 per cent from 13.2 Gw at the end of June 2025 to 16.4 Gw at the end of June 2026. NTPC’s total installed capacity of 91 Gw accounts for 16.6 per cent of the country’s total installed capacity. It includes 74 Gw of thermal, 12 Gw of RE, 4 Gw of hydro and 1 Gw of pumped storage projects (PSP).   

Pumped storage projects are hydroelectric facilities that store electricity by pumping water to an elevated reservoir using surplus clean energy available and produce power by releasing it through turbines during periods of high demand.

By the end of FY22, NTPC's total renewable energy installed capacity was 2 Gw. 

In terms of power generation, NTPC’s share is about 24 per cent. 

Overall, NTPC group had 35.7 Gw capacity being built at the end of last month. Apart from RE and coal-based projects, under construction hydro-power projects including pumped hydro contributed 3.6 Gw. 

During the June 2026 quarter, the power behemoth added 1.7 Gw capacity projects along with its subsidiaries, including 820 Mw thermal power and 976 Mw renewable energy. 

Director-Finance Jaikumar Srinivasan told investors that RE would be the key driver of NTPC's future growth led by its arm NTPC Green Energy Ltd, while the share of fossil fuel-based capacity is expected to gradually decline from 82 per cent at present to 56 per cent by FY32 and further to 39 per by 2037. 

NTPC is steadily transforming into an integrated energy major with interests spanning renewables, hydrogen, storage, nuclear, mobility, mining, trading and international business, Srinivasan told investors. NTPC is targeting a capacity portfolio of 150 Gw by FY32 on to 250 Gw by FY37, he said. 

Vikas Gaba, partner and national head, power and utilities, KPMG said if battery prices continue to decline, they will undoubtedly accelerate the deployment of round-the-clock renewable power. 

“Lower storage costs will significantly improve project economics, making it easier for developers and utilities to deliver firm, dispatchable renewable electricity at competitive tariffs,” said Gaba. 

Charith Konda, lead energy specialist, the Institute for Energy Economics and Financial Analysis (IEEFA) said battery energy storage prices have fallen sharply in recent years. 

For instance, the tariff for a 2-hour, single-cycle standalone battery storage project declined from around ₹ 4.5 lakh/Mw/month in 2023 to ₹1.65 lakh/Mw/month by March 2026 — a reduction of more than 60 per cent, said Konda. 

While this trend benefits consumers, it also raises concerns about aggressive bidding in India’s battery storage auctions. At such low tariffs, many projects may face challenges in achieving financial closure, said Konda. 

“Looking ahead, prices are likely to stabilise as the industry matures and market fundamentals take hold. Energy storage remains indispensable in a high-renewables scenario, and we can expect increasing participation from developers who will integrate storage into their projects, driven by both policy support and economic rationale," said Konda. 

That said, sustained declines are not guaranteed, as rising prices of critical minerals, supply chain constraints, and increasing global demand for batteries could create cost pressures and moderate the pace of future price reductions,” added Gaba. 

NTPC's operational RE capacity currently stands at 12 Gw and its renewable portfolio is targeted to reach 60 Gw by FY32 and expand further to 136 Gw by FY37. In FY26, the company added around 4.2 Gw of RE capacity and, subject to transmission infrastructure, it is targeting to add 7-8 Gw of renewable capacity in FY27. 

It is planning an investment of ₹16.8 trillion by FY37 to meet its capacity addition targets, NTPC Chairman and Managing Director Gurdeep Singh said at the investor’s meet. 

NTPC is also building a portfolio of PSP and battery energy storage systems (BESS). It has an 18 Gw pumped storage portfolio. On nuclear business, the company has identified 30 potential sites across multiple states, and site selection studies have commenced at 10 locations. 

Recently, Anushakti Vidhyut Nigam Ltd (ASHVINI), NTPC’s joint venture with Nuclear Power Corporation of India Ltd (NPCIL), floated a ₹28,000 crore tender for the construction of nuclear island in the proposed 2,800 Mw Mahi Banswara Nuclear Power Plant in Rajasthan. 

The shift in capacity trend indicates that the company’s future capacity will increasingly come from renewable energy while thermal power still continues to play a crucial role for meeting baseload demand and maintaining grid stability. 

Despite the increase in India’s clean energy capacity, adequacy of the Inter-State Transmission System to evacuate power from renewable energy projects has emerged as a key bottleneck in recent times, said Anujesh Dwivedi, partner, Deloitte India.

“Increasing share of renewable generation capacity requires to be matched with necessary investments in power grids,” he said. 

Recognising this, the government has initiated a slew of measures to fast-track the setting up of transmission infrastructure. India's total fossil fuel-based power capacity stood at 251 Gw at the end of June 2026 while renewable energy contributed 236.5 Gw along with hydro at 52 Gw and nuclear at 8.8 Gw. 

After reaching 50 per cent installed capacity from non-fossil fuels as committed under Nationally Determined Contribution (NDC), India has now raised that ambition to 60 per cent to be achieved by 2035.