Power Sector & NTPC

Present & Future (Issues & Challenges)

For NTPC Executives (E7) Corporate Planning Department March 2021

Presentation Outline
INDIAN NTPC NTPC ISSUES AND
POWER OVERVIEW FUTURE CHALLENGES
SECTOR PLAN
Potential Trends PLF, Generation
Global Stature & DISCOMS
Generation
NTPC @ 2032 Load Curve
Analysis
JV’s and
Subsidiaries
Changing Market Cleaner Power
Dynamics
Transmission Performance
Highlights Action Plan Ash Utilization
INDIAN POWER
SECTOR
3
 Overview of Indian Power Sector
Power Scenario : Global vs India
World (2020) India (2020)
1. Generation: 25.88 TU; 1. Generation: 1.39 TU;
2. Generation Fuel Mix: 2. Generation Fuel Mix:
• Coal: 33% (8.5TU) • Coal: 71% (0.99TU)
• Gas: 23% (5.91 TU) • Gas: 3% (0.048 TU)
• Nuclear: 10% (2.71 TU) • Nuclear: 3% (0.046 TU)
• Renewables (including hydro): 31% (8.13 TU) • Renewables (including hydro): 21% (0.292 TU)
• Others: 3% (0.63) • Others: 2% (0.014)
3. Per Capita Consumption: >3 Thousand kWh 3. Per Capita Consumption: 850 kWh (2018)*
* World Energy Outlook 2020
Yearly Power Generation (BU)
Cap in GW as on Coal + 1600 1013 1106 1166 1234 1303 1371 1384
Gas Nuc Hyd RE Total 1400
31.01.2021 Lignite 1200
1000
Private 76 (37%) 11 (44%) -- 3 (7%) 88 (96%) 178 (46%)

BU
800
600
State 67 (33%) 7 (28%) -- 27 (59%) 2 (2%) 99 (29%) 400
200
Central 63 (31%) 7 (28%) 7 (100%) 15 (33%) 2 (2%) 94 (24%) 0
2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20
All India 206 25 7 46 92 377 Renewable 53.09 62.577 65.4 81.3 101.7 126.8 137.83
NTPC Group 53 6.5 -- 4 1 65 Nuclear 34 36 37 37 38 37 46
Hydro 134 129 121 122 126 135 156
~ 3.5% (12 GW) Growth in FY19, 8.7 GW RE growth Thermal 792 878 943 994 1037 1072 1044

CAGR for last 5 years is 3.48%

Overview of Indian Power Sector
Transmission and Distribution

Ckm of Transmission lines in India 220 kV 400 kV 765 kV 500 kV HVDC 800 kV HVDC Total
As on 31st January 2021 1,83,872 1,87,149 44,855 9,432 9,655 4,34,963

Shortage in supply
• Electricity demand vs supply in FY20: 1291 BU vs • Peak Power demand vs supply in FY20: 183 GW vs
1284 BU 182 GW
• Overall shortage: 0.5 % • Overall shortage: 0.7%
• Shortage > 0.2% : J&K, HP,UP, UK, AP, Karnataka, • Shortage > 0.2%: J&K, UP, Chhattisgarh, Madhya
Kerala, Tamil Nadu, Puducherry, Bihar, Jharkhand, Pradesh, Daman & Diu, Kerala, Tamil Nadu, Bihar,
WB, , A&N Islands, All NER States Jharkhand, West Bengal, A&N Islands, All NER States
except Meghalaya & Mizoram

Consumption of Electricity
Industrial Domestic Agriculture Commercial Railways & Others
42% 24% 18% 8% 8%

Reforms in Distribution Sector through UDAY:

1. AT&C Loss reduced to 18.9%
 NTPC
OVERVIEW

6
 NTPC
NTPC - Global
–as on today Stature
64,880 MW capacity under Operation
- 17% of the country’s installed capacity,
- 21% Generation share in the country

20,224 MW under Construction (Including 1320 MW Bangladesh Project)

10 coal mine blocks awarded by GOI

18,413 committed workforce (as on 31.12.2020)

Ranked No-2 IPP in the world by Platts

 NTPC – JVs and Subsidiaries
Joint Venture(JV) Companies
POWER GENERATION JV’s AND SUBSIDIARIES
SN Company Name (Incorporated on) Promoters Equity holding Cap(MW)
1 NTPC-SAIL Power Company Pvt. Ltd. (NSPCL) (08.02.1999) NTPC-50%, SAIL-50% 814
2 NTPC Tamil Nadu Energy Company Limited (23.05.2003) NTPC-50% TANGEDC0-50% 1500
3 Bharatiya Rail Bijlee Company Ltd. (22.11.2007) NTPC 74% Indian Railways-26% 750
4 Kanti Bijlee Utpadan Nigam Ltd. (06.09.2006) NTPC- 100% 610
5 Patratu Vidyut Utpadan Nigam Ltd (15.10.2015) NTPC-74% JBVNL-26% -
6 Nabinagar Power Generating Company Private Ltd. (09.09.2008) NTPC-100 % 500
7 Meja Urja Nigam Private Ltd. (02.04.2008) NTPC-50% UPRVUNL-50% 1320
8 Aravali Power Company Private Ltd. (21.12.2006) NTPC-50% IPGCL-25% HPGCL- ---
25%
9 Ratnagiri Gas and Power Pvt. Ltd. (RGPPL) (08.07.2005) NTPC - 60.98%, GAIL - 25.51%, 1967
MSEB Holding Co.-13.51%
10 Trincomalee Power Company Limited (TPCL) (26.09.2011) NTPC-50%, CEB-50% -
11 Bangladesh India Friendship Power Company (Pvt.) Limited NTPC-50%, BPDB-50% -
(31.10.2012)
12 Anushakti Vidyut Nigam Limited (27.01.2011) NTPC-49%, NPCIL- 51% -
13 THDC India Limited (12.07.1988) NTPC- 74.496% Govt. of UP- 1587
25.504%
14 North Eastern Electric Power Corporation Limited (02.04.1976) NTPC-100% 1757

15 NTPC Renewable Energy Ltd. (07.10.2020) NTPC-100% -

16 TUSCO Limited (12.09.2020) THDCIL-74%, Govt. of UP-26% -
 POWER SERVICES STRATEGIC DIVERSIFICATION
SN Joint Venture(JV) Companies
Company Name
(Incorporated on)
Promoters Equity holding SN Company Name
(Incorporated on)
Promoters Equity holding

23 Hindustan Urvarak & Rasayan Limited NTPC -29.67%

17 Utility Powertech Ltd. NTPC-50%, Reliance Infrastructure (HURL) CIL - 29.67 %
(15.06.2016) IOCL-29.67%
(23.11.1995) Ltd. 50%
FCIL- 7.33%
18 NTPC GE Power NTPC-50%, GE Power Systems- HFCL- 3.66%
24 Transformer & Electricals Kerala Ltd. NTPC-44.60%
Services Private 50%
(09.12.1963) Govt. of Kerala-54.56%
Limited (NGSL) Others-0.84%
(27.09.1999) 25 NTPC BHEL Power Projects Private Ltd. NTPC-50%
(28.04.2008) BHEL-50%
19 National High Power NTPC-20%, NHPC-20% PGCIL- 26 BF-NTPC Energy Systems Ltd. (19.06.2008) NTPC-49%,
Test Laboratory 20%, DVC-20%, CPRI-20% Bharat Forge Ltd.-51%
(Private) Ltd. FORWARD INTEGRATION
27 NTPC Electric Supply Co. Ltd. NTPC-100%
(22.05.2009)
(21.08.2002)
20 Energy Efficiency NTPC-47.15% PFC-24.97% 28 NTPC Vidyut Vyapar Nigam Limited NTPC-100%
Services Ltd. PGCIL- 5.71% REC-22.18% (01.11.2002)
(10.12.2009)
STRATEGIC ALLIANCE
MINING 29 International Coal Ventures Pvt. Ltd. NTPC-0.27%,RINL 24.80%, SAIL-
(20.05.2009) 49.59,
21 NTPC Mining Limited NTPC-100% NMDC-24.80%,CIL-0.54%
(29.08.2019) 30 CIL NTPC URJA PRIVATE LIMITED NTPC-50% CIL-50%
(27.04.2010)
WtE 31 PTC India Ltd NTPC- 4.05%
NHPC- 4.05%
22 NTPC EDMC Waste NTPC-74% PFC – 4.05%
Solutions Private EDMC-26% PGCIL- 4.05%
Limited (01.06.2020) DVC-3.38 %
LIC -5.95 %
Others including Public-74.47%
Performance Highlights
GoI MoU Performance: Excellent rating in FY’20

Commercial Performance: 100% realization in FY’20

Tripartite Agreement: Since the last TPA which expired on 31.10.2016, NTPC has signed new TPAs with 29
out of 31 States and Union Territories.

Declaration of commercial operations: 5,290 MW (FY20)

Highest Generation by NTPC: Daily: 1.1 BU on 5th March 2021

PLF of Coal Stations (Apr-Mar 2020): NTPC-68%, National Average-56%

Top 10 power stations in the country (in terms of PLF) : 4 NTPC Stations (Rihand, Singrauli, Korba & Sipat)

Plantation: Planted 9 Lakh plants in FY21, will complete 10 Lakhs by end of Financial year
 NTPC - COVID Pandemic
 Substantial Support (INR 250 crore) to PM cares Fund
 Proactive relief measures for villages nearby its business units, regular sanitization of villages,
face masks & grocery distribution, distribution of PPE kits to health professionals
 Medical College cum Hospital at Sundargarh, Odisha with 200 bed facility handed over by
NTPC to Govt. of Odisha, functioning as COVID-19 Care Centre cum Isolation ward
 Provisions incorporated in running contracts to provide COVID specific safety gear to the
associates
 Provided Work from Home (WFH) facilities to employees during the lock down by enabling
VPN access for critical applications and Video Conferencing (VC) facility through MS teams
 NTPC defer capacity charges of INR 2,064.00 crore to DISCOM’s for the lock-down period on
account of COVID-19 pandemic for the power not scheduled by the DISCOM’s payable without
interest at end of the lockdown period in three equal monthly instalments.
 NTPC allowed a rebate of INR 1,363.00 crore on capacity charges billed during the lock-down
period to DISCOM’s

11
FUTURE
OUTLOOK

12
Indian Context-Potential trends
1 Demand-Supply scenario Deficit decreased from 4.2% to 0.5% in last 6 years- Supply overhang

Renewable prices are becoming competitive with time (Solar Bid-1.99 Rs/kWh, Wind –
2 RE 2.77 Rs/kWh).
Solar has surpassed wind capacity in January 2021
NTPC Commissioned India’s first Ultra Supercritical thermal power plant at Khargone,
3 Fuel/ Technology Indore.
There is no shortage of coal expected.

Storage is becoming cheaper day by day, as per report by IEA tariff of Solar + BESS is
4 Storage and EV expected to be 3.5 Rs/kWh by 2025.
EV’s are also picking up and as per government's plan 30% vehicles will be EV by 2030

Flexible operations have become norm in Thermal Power Plants, ROI is linked to flexible
5 Coal ops operations in current CERC norms.
With further integration of RE, flexible operations is going to increase.

Govt. has come with stricter norms for emission control.

6 Emission control
NTPC is in process of installing ~59 GW of FGD to reduce SOx levels in its plants.

Market structure is changing with new draft policies allowing PPA’s to be surrendered
7 Market structure after 25 years of operation.
SCED allowing power to be purchased from lowest VC plant thus benefitting end user.
NTPC@2032- Key destinations
NTPC @ 2032
 NTPC has planned to achieve 130 GW power generation Fuel Capacity
capacity by 2032. Coal 85 GW

 Capacity growth would be fuel diversified- thermal Gas 6 GW

portfolio to reduce from 97% to 70% Solar 30 GW

Other RE 2 GW
 30% non fossil capacity (Present level-7.8% only)
Hydro 5 GW
 NTPC to exceed 600 BU Annual Generation by 2032 Nuclear 2 GW
 Coal Mining: By 2032, about one fourth of coal requirement Total 130 GW
would be met through captive mines
Coal Gas Hydro Solar Other RE Nuclear
 NTPC Targets in Preferred Business Areas:
2% 2%
 Ancillary Services and Storage : 25% Market Share
 E-Vehicle: 10% Market Share 23%

 Growth in Consultancy business 4%

5% 65%
 Distribution : May be done at right opportunity
NTPC@2032
Generation capacity targets-Fuel Mix@2032
Present NTPC @ 2032

65 GW Fuel Type 130 GW

81.5% 65.4%
Coal
(53 GW) (85 GW)
1.7% 23.1%
Solar
(1.1 GW) (30 GW)
9.2% 4.6%
Gas
(6 GW) (6 GW)
5.8% 3.8%
Hydro
(3.8 GW) (5 GW)
1.5%
0% Nuclear
(2 GW)
0.3% 1.5%
Other RE
(0.2 GW) (2 GW)
 Action Plan
 Green Field Projects: NTPC has taken a decision not to install any Green Field Coal project in
future
 Focused Renewable Expansion: NTPC has made a subsidiary 'NREL' to enhance its focus on
expansion in Renewable Energy.
 Project Management Unit: Real time visualization and analytics for governance and control of
projects; use of Drone. (allowed for Vindhyachal, Gadarwara and Sipat Plant)
 Digitalization: NTPC will digitalize itself rapidly using technologies like RPA, Analytics,
Visualization, Predictive models in forecasting etc.
 Transportation: NTPC is focusing on carbon free mobility solutions including EV charging, EV
transportation/Hydrogen FCEV transportation.
 Hydrogen: NTPC is actively perusing green hydrogen portfolio which aligns well with NTPC’s
large renewable growth plans
Growth beyond Geographies
Bangladesh:
1. NTPC is constructing a 1320 MW coal based power plant.
2. NVVN has signed MoU with Bangladesh Power Development Board (BPDB) on 10th April 2017 for
supply of 500 MW power from GMR Upper Karanali project, in Nepal
3. During the Calendar Year 2020 (Jan-Dec), NVVN has supplied 4,653 MU (Provisional) to Bangladesh
Sri Lanka: Further, on request from GoSL, NTPC is putting up 300 MW LNG project at Kerawalapitiya &
50 MW solar PV project at Sampur in Sri Lanka
Nepal: During the Calendar Year 2020 (Jan-Dec), NVVN has supplied 867 MU (Provisional) to Nepal
Other countries
NTPC is also exploring business opportunities in Myanmar, Vietnam, Zimbabwe, Oman, Qatar, Morocco,
UAE, Mozambique, Malawi, Kenya, Uzbekistan & Israel.
 Changing Market Dynamics
Security Constrained Economic Dispatch (SCED)
 SCED is running among Inter State Generating Stations (ISGS) since 01.04.2019 and Pilot is extended till
31.03.2021
 Opportunity to explore optimization of total schedule of the Inter State Generating Stations based on the
variable cost
 Plants with lower variable cost given schedule in place of plants with higher variable cost
 Money saved is distributed 50:50 among beneficiaries and Generating stations
 60% of the share of generating stations go to SCED Up stations, 40% of the share goes to the SCED down
stations
 Win - Win situation for both Beneficiaries as well as generating stations

Market Based Economic Dispatch (MBED)

 CERC submitted a paper for discussion on Market Based Economic Dispatch
 All stations to register for day ahead market, power dispatched at market clearing price
 Fixed charges given by beneficiaries as per PPA, variable charges based on market clearance price.
 Excess amount will be returned to beneficiaries by generator,
 Generator sell its unscheduled power in Market, net revenue will be shared 50:50 between beneficiaries
and generator
ENERGY VISION 2035 – NITI AAYOG
Energy Parameters in 2035 under different Scenarios
2035 Business as Usual (BAU) Low Carbon (LC)
Electricity Demand 3970 TWh 3765 TWh
Installed Capacity 1214 GW (53% RE) 1280 GW (64% RE)
Electricity Generation 4396 TWh 4143 TWh
Energy Intensity (goe/GDP in INR) 5.179 4.306
Emission Intensity (kg CO2 0.0139 0.01
eq/GDP)
Estimates of Components in Energy Sector @ 2035
Category 2020 2035
Pumped Hydro (GWh) 5 210
Battery Storage (GWh) 8 727
Coal Thermal Capacity, GW 239 (58%) 250-387(20-32%)
Power Generation from Coal, 1131(72%) 1313-2032 (32-46%)
TWh
Gas Based, GW 33 (8%) 40-52 (3-4%)
Coal , Import 24% 5-11%
Natural gas 53% 26-31%
19
GLOBAL ENERGY FORECAST

 Globally renewable is
estimated to gain share
relative to coal

 Share of coal is
estimated to decline from
40% in 2010 to around
30% by 2030

 Share of non-fossil fuels

is estimated to increase
to more than 45% by
2030

WORLD ENERGY OUTLOOK 2020

ISSUES AND
CHALLENGES 21
 Issues and Challenges- Load Curve Analysis
Illustrative Day load curve and supply stack (a typical summer day)
65 71 75 73 72 69 67
61 59 59 62 64 61
Coal PLFs 58 57 55 52
during the day 45 43
38 35 37
450 33 30

400

350 Load Curve

300
243
250
198
GW

200

150

100

50

0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
RE Solar MW RE Non Solar MW Hydro MW Nucl MW
Gas MW Coal MW Demand (April) MW
Issues and Challenges- Cleaner Power
Installation Period of SPM Norms SO2 NOx Mercury
power plants (mg/Nm3) (mg/Nm3) (mg/Nm3) (mg/Nm3)
< 500 MW ≥ 500 MW
Installed before December 100 600 200 600 0.03
31, 2003
Installed after 2003 and up 50 600 200 300 0.03
to 31 Dec, 2016
Installed after 31 December, 30 100 100 100 0.03
2016

• FGD: Operational- Vindhyachal & Dadri (1340 MW), Under Construction-~59 GW capacity,
• SNCR/SCR- Pilot study (Simhadri)
Ash Utilization – FY’20
ASH UTILIZATION PLANT WISE ASH UTILIZATION (73% Utilized in FY’20)
Lara 0.27
Gadarwara 1.58 9 out of 22 Brick NTPC 0.10%
Barauni 18 Stations
Vindhyachal 29.33
Singrauli 39.24
achieved more Others 4%
Rihand 43.18 than 100% ash
Bongaigaon 45.39
Mine Filling 4%
Sipat 49.1
Korba 67.03
Barh 67.08 Land Development 7%
Talcher K 67.28
Kahalgaon 76.12
Unchahar 90.47 Issue to Brick/Block/Tile Ind. 8%
Talcher Th 100.42
Kudgi 100.45
Mouda 100.61
Issue to Cement& Other Ind. 11%
Dadri 101.51
Solapur 116.57
Roads/Rail Embankment 18%
Ramagundam 118.22
Farakka 128.61
Tanda 157.21 Ash Dyke Raising 21%
Simhadri 168.55
 Vision, Mission & Core Values
Vision: ‘TO BE THE WORLD’S LEADING POWER COMPANY, ENERGIZING INDIA’S GROWTH’

Mission: ‘PROVIDE RELIABLE POWER AND RELATED SOLUTIONS IN AN ECONOMICAL, EFFICIENT

AND ENVIRONMENT FRIENDLY MANNER, DRIVEN BY INNOVATION AND AGILITY’

Core Values
ICOMIT
Integrity
Customer Focus
Organizational Pride
Mutual Respect and Trust
Innovation and Learning
Total Quality and Safety

THANK YOU
Copyright © 2016 Your Company All Rights Reserved. 26