ONGC and NTPC Sign MoU to Form Renewable Energy JV
India’s largest power utility NTPC and Indian multinational crude oil and gas corporation ONGC have signed a MoU for setting up a joint venture for renewable energy business. Mr. AK Gupta, Director (Commercial), NTPC and Mr. Subhash Kumar, Director (Finance), ONGC signed the MoU on-behalf of both organisations. The signing was done at ONGC’s Delhi office. Officials from both companies also joined the ceremony over virtual conferencing on 22nd May 2020.
Purpose of this Renewable Energy MoU
With this MoU both companies will be able to expand their presence in renewable energy sector in India and as well as overseas. They shall explore setting up offshore wind and other renewable energy projects. The focus shall also be laid in fields of sustainability, storage, E-mobility and Environmental, Social and Governance projects.
What Pushed NTPC & ONGC to Tie-up
The move for setting up renewable energy based joint venture shall help NTPC in achieving its target of 32 GW of renewable energy projects by 2032.
At present NTPC has 928 MW of installed renewable power projects out of which 870 MW is solar (93.75%), 50 MW is wind (5.38%) and 8 MW of small- hydro power (0.86%). 2298 MW solar power projects are under implementation in India.
As per the present portfolio of NTPC, company does not have much presence in offshore wind and overseas renewable energy projects. With this MoU, NTPC will be able to also expand its footprint in offshore wind and overseas renewable energy projects with the help of ONGC’s presence and expertise. As ONGC’s present renewable portfolio is of 176 MW comprising of 153 MW wind power (87%) and 23 MW of solar power (13%).
Similarly, MoU shall help ONGC to expand its footprints in renewable energy sector and also help in adding 10 GW of renewable energy in its portfolio by 2040.