IEEFA recommends NTPC acquire stranded thermal power plants instead of new projects.

15 Jun 2023 , 12:20 PM

The Institute for Energy Economics and Financial Analysis (IEEFA) has highlighted the potential benefits of strategic acquisitions and the revival of stranded thermal power plants by NTPC.

According to IEEFA, this approach can help banks clear their balance sheets and unlock capital for investment in renewable energy. The government has directed NTPC to add 7 GW of thermal power capacity, as per the research firm’s report.

Strategic acquisitions and subsequent revival of stranded thermal power plants will address the issue of stranded assets and meet the country’s short-term power demand. 

Shantanu Srivastava from IEEFA suggests that this approach is a viable alternative to adding new thermal assets and promotes energy security.

NTPC aims to install 60 GW of renewable energy capacity by 2030, requiring capital from global ESG investors.

Retiring and repurposing acquired stressed thermal assets for renewable energy generation aligns well with ESG investors and prevents future stranded assets.

The report identifies six plants with a cumulative capacity of 6.1 GW suitable for strategic acquisition by NTPC in collaboration with other government-owned entities.

IEEFA suggests that NTPC can acquire these stressed thermal assets with minimal investment, benefiting all stakeholders involved.

This approach contributes to addressing power sector challenges, promoting renewable energy, and aligning with ESG considerations.

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