NHPC incorporates subsidiary for renewable energy biz

New Delhi: State-owned hydro power giant NHPC has incorporated a wholly-owned subsidiary for clean energy business, including green hydrogen.

As per a BSE filing, the new company -- NHPC Renewable Energy Ltd -- was registered with Registrar of Companies, NCT of Delhi & Haryana, on February 16, 2022.

The development comes against the backdrop of the government's focus on renewable energy and target of 500 GW of clean energy by 2030.

The government on Thursday unveiled the first part of the much-awaited National Hydrogen Policy, allowing free inter-state wheeling of renewable energy used in the production of green hydrogen and ammonia, among other things. State-owned NTPC has already incorporated NTPC Renewable Energy Ltd for its expansion in clean energy space.

Later, in a statement issued by Ministry of Power, NHPC CMD A K Singh said,"The incorporation of NHPC Renewable Energy Ltd shows our deep commitment towards tapping renewable energy which helps in reduction of carbon emissions and in producing clean and green energy."

The decision of setting up a subsidiary for renewable energy comes at a time when NHPC, which is predominantly a hydro player, plans to increase the share of renewable energy in its generation portfolio, he added.

The formation of the renewable energy unit had received the nod of Department of Investment and Public Asset Management and NITI Aayog in December 2021.

The subsidiary shall develop renewable energy projects either in standalone mode or through formation of special purpose vehicles with collaboration of other agencies, it stated.

Currently, NHPC's total installed generation capacity is 7071 megawatt (MW) which includes 100 MW of solar/ wind energy-based plants. Another 5,999 of hydro and 105 MW of solar plants are under construction, it stated.

NHPC is expanding its renewable energy portfolio and has taken up several projects under different modes, which are under the tendering / development stage.

Recently, NHPC signed a Letter of Intent with Rajasthan Renewable Energy Corporation Ltd (RRECL) for development of 10,000 MW renewable energy projects / parks in Rajasthan, it stated.