NLC India Bets Big on Renewables with ₹1.25 Lakh Crore Plan
NLC India plans ₹1.25 lakh crore investment to triple capacity by 2030, with a major push into renewables, green hydrogen, and battery storage to support India’s clean energy goals. NLC India Ltd will invest ₹1.25 lakh crore to expand capacity to 20 GW by 2030, allocating ₹65,000 crore to renewable energy and ₹15,000 crore to battery storage. Through NLC India Renewables Ltd (NIRL) and a proposed IPO, the company targets solar, wind, green hydrogen, and pumped hydro growth. Challenges include financing, land acquisition, and integrating renewables into India’s coal-dominant grid.
Concentrating on renewable energy, NLC India Ltd hopes to spend 1.25 lakh crore by 2030 to increase capacity from 6.7 GW to 20 GW. Although this bold plan presents financial and logistical difficulties, it helps to advance India's green energy initiative.
Out of the total investment, 65,000 crore is allotted to renewables—including solar, wind, pumped hydro, and green hydrogen; 15,000 crore is earmarked for battery storage; and 45,000 crore is for thermal projects. With 3,720 crore approved for investment, subsidiary of NLC, NLC India Renewables Limited (NIRL), intends an IPO to support green projects. Building a project in Gujarat, the corporation has inked a 200 MW renewable energy agreement with Telangana. NLC also looks into critical mineral mining, like lithium in Mali, to help battery output.
With 201.75 GW installed as of May 2024, India seeks for 500 GW by 2030. NLCs fit this, but coals 70% share in power generation create a transition issue. High debt expenses strain financing from internal accruals and loans; Indias green bond market is at $18 billion. Posts on X laud NLCs vision but cast doubt on thermal investment priorities. Critics point out grid integration problems and land acquisition delays, with 10% renewable energy waste.
Although NLCs' worldwide consulting initiatives in Sri Lanka and Africa might raise income, execution risks abound. Though subsidies and policies like Uttar Pradesh's Green Hydrogen Policy foster development, rural grid improvements trail.
NLCs' investments show a great dedication to renewables. Overcoming financing and infrastructural barriers will be essential for India to meet its sustainable energy goals.
Source: Outlook Business
What's Your Reaction?
