NTPC Unleashes Massive Power Surge: 18 GW Capacity Boom & Lakhs Crore Capex by 2027!

Energy

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Updated on 13 Nov 2025, 02:40 pm

NTPC Limited, India's largest power generator, has outlined ambitious plans for capacity expansion. By March 2027, the company aims to add more than 4 gigawatts (GW) of thermal power capacity and a substantial 14 GW of renewable energy capacity. Specifically for FY26, NTPC targets 2.78 GW of thermal power and 6 GW of renewable energy, having already added 2.78 GW thermal and 2.98 GW renewables in H1 FY26. For FY27, the goals are 1.6 GW thermal and 8 GW renewables.

As of Q2 FY26, the NTPC Group's total installed capacity reached 83.9 GW, with its standalone capacity at 60.7 GW. The group added 4.403 GW in H1 FY26, including contributions from NTPC Green Energy (NGEL) and its joint ventures. Generation in Q1 FY26 was 110 billion units (BU), slightly down from 114 BU in the previous year. Standalone average power tariffs rose to ₹4.90 per unit in H1 FY26. However, the plant load factor (PLF) for coal-based stations declined to 66.01% in Q2FY26, attributed to grid restrictions.

Capital expenditure (capex) is a major focus. NTPC has set group-level capex targets of ₹35,144 crore and standalone targets of ₹29,000 crore. Group capex in H1 FY26 was ₹23,200 crore, a 32% increase YoY. NGEL incurred ₹6,600 crore capex in the same period. Total capex for the fiscal year is projected at ₹30,000 crore, rising to ₹45,000-46,000 crore in FY27. NTPC has a long-term capex plan of ₹7 lakh crore by 2032, covering construction, thermal, RE, Pumped Storage Projects (PSP), and nuclear capacity additions.

Impact: This news is highly significant for the Indian stock market. NTPC's aggressive growth strategy in both conventional and renewable energy, backed by substantial capital expenditure, signals strong future performance. This is likely to boost investor confidence in NTPC and the broader Indian energy sector. Rating: 8/10

Heading: Difficult Terms Explained * Gigawatts (GW): A unit of power equal to one billion watts, used for large-scale electricity generation. * Megawatt (MW): A unit of power equal to one million watts. * Renewables: Energy from naturally replenished sources like solar and wind. * FY (Fiscal Year): A 12-month financial period, typically April 1 to March 31 in India. * H1 (First Half): The first six months of a fiscal year. * Q1, Q2 (First Quarter, Second Quarter): Three-month periods within a fiscal year. * CPSU (Central Public Sector Undertaking): A government-owned company in India. * Installed Capacity: The maximum electrical power output a power plant can deliver. * NTPC Green Energy (NGEL): NTPC's subsidiary focused on renewable energy projects. * Joint Ventures (JVs): Business arrangements where multiple companies collaborate on a project. * Standalone Capacity: Capacity owned and operated solely by the parent company. * Billion Units (BU): A unit of electricity consumption (1 BU = 1 million kWh). * Plant Load Factor (PLF): A measure of a power plant's average output compared to its maximum capacity; indicates utilization. * Basis points: One-hundredth of a percentage point (e.g., 100 basis points = 1%). * Capital Expenditure (Capex): Funds spent on acquiring or upgrading physical assets like property and equipment. * Pumped Storage Project (PSP): A type of hydroelectric storage using pumps to move water between different reservoir levels.