India’s Oil and Natural Gas Corporation Limited (ONGC) and NTPC Ltd. have signed a Memorandum of Understanding (MoU) to set up a joint venture company for the renewable energy business.
As per the MoU, NTPC and ONGC will explore the setting up of offshore wind and other renewable energy projects in India and overseas.
They shall also explore opportunities in the fields of sustainability, storage, E-mobility and ESG (Environmental, Social and Governance) compliant projects, the companies said.
The MoU is expected to enable both companies to accelerate their footprint in renewable energy.
ONGC is India’s largest oil and gas exploration and production company.
The state-owned entity currently has a renewable portfolio of 176 MW comprising of 153 MW wind power and 23 MW of solar.
The MoU is expected to increase the company’s footprint in the renewable power business and enable its ambition to add 10 GW of renewable power to its portfolio by 2040.
NTPC is India’s largest power company with an installed capacity of over 62 GW.
Presently, the state-owned utility has 920 MW of installed renewable energy power projects in its portfolio and about 2,300 MW of renewable energy projects under construction.
With this tie-up, NTPC expects to accelerate its renewable energy capacity addition program and also expand its footprint in offshore wind and overseas renewable energy projects.
The company has set a target of developing 32 GW of renewable energy projects by 2032.