Thermal power firms may transition to green energy faster than anticipated.

16 May 2023

State-owned NTPC is by far the largest to make the transition, but Tata Power and even Adani Power, despite the noises surrounding its coal business, are on the same trajectory

In April and May this year, there have been two consequential news stories in the Indian energy sector. The first one is that NTPC Green Energy is set to be listed this year. The second news is that India will not approve any new coal plants beyond those already under construction.

Reading both together means the investment plans of the energy companies in India have already pirouetted towards green. Given the huge preponderance of coal in the economy – it still accounts for 77 per cent of electricity generation -- this should be considered significant. Certainly, the changes are coming far faster than anticipated, given the stretched-out target set by India of net zero by 2070. State-owned NTPC is by far the largest to make the transition, but Tata Power and even Adani Power, despite the noises surrounding its coal business, are on the same trajectory.