Oil and Natural Gas Corporation (ONGC) and India’s largest energy conglomerate NTPC have recently signed a memorandum of understanding (MoU) to establish a joint venture for renewable energy business.
As per the terms of the MoU, both of these firms have agreed to explore and set up renewable energy projects in India and overseas markets. This venture will focus on opportunities in the fields of sustainability, storage, e-mobility and ESG compliant portfolios.
ONGC director (finance) Subhash Kumar and NTPC director (commercial) A K Gupta signed the MoU. The joint venture is focusing to reduce the carbon footprint and carbon cost of funding. However, ONGC Chairman and Managing Director Shashi Shanker and NTPC head Gurdeep Singh through virtual conferencing witnessed the occasion.
Presently, NTPC has 920MW of installed renewable power capacity in its portfolio and around 2,300MW of renewable projects are under process. By 2032, the company is aiming to attain a goal to produce 32 GW (Giga Watt).
However, on the other hand, ONGC has 176 MW (Mega Watt) of renewable power capacity including 153 MW wind power and 23 MW of solar energy.
ONGC had entered into non-conventional energy sources, especially wind power, under the leadership of former chairman, late Subir Raha. The company had also established a Renewable Energy Cell (REC) under chief technical services. The cell was set up with an aim to act as the knowledge centre for all renewable energy projects.
The association NTPC is expected to thrive ONGC’s existence in renewable energy section that is highlighted in its Energy Strategy 2040 document. This tie-up will back NTPC to expand its operations abroad, especially in overseas oil and gas fields where ONGC’s overseas investment arm, ONGC Videsh, already has stakes.