NTPC, ONGC sign MoU to set up renewable energy JV
As per the MoU, the two state-owned power producers shall explore setting up of renewable energy projects in India and overseas, and sustainability, storage, e-mobility and ESG (Environmental, Social and Governance) compliant projects.
State-owned power generators NTPC Ltd and Oil and Natural Gas Corporation Limited (ONGC) have signed a Memorandum of Understanding (MoU) to set up a joint venture company for renewable energy business. This MoU will enable both companies to accelerate their footprint in the Renewable Energy.
As per the MoU, NTPC and ONGC will explore the setting up of offshore wind and other renewable energy projects in India and overseas. They shall also explore opportunities in the fields of sustainability, storage, e-mobility and ESG (Environmental, Social and Governance) compliant projects.
Currently, NTPC has 920 MW of installed renewable power projects in its portfolio and about 2300 MW of RE projects under construction. This tie up would accelerate its RE capacity addition program and also expand its footprint in offshore wind and overseas renewable energy projects in the process for realising its ambitious renewable energy target of 32 GW by 2032 (24.6% of energy basket) from 0.9 GW (1.6%) at present.
“[The power producer] is actively looking at East Asia, Middle East and Africa for business opportunities. It has also qualified for RFQ submitted for 600 MW solar project in Egypt”—stated NTPC in its investor presentation.
ONGC has a renewable portfolio of 176 MW comprising 153 MW wind power and 23 MW of solar. This development will enhance the presence of ONGC in the Renewable Power business and enable its ambition to add 10 GW of renewable power to its portfolio by 2040.