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GW Company
A Maharatna Company
Renewable Energy region since fixed charges of all states are pooled thereby
The Government of India has set a target of 175 GW replacing the costlier power, resulting in net savings to their
renewable energy by 2022 and by 2027, Government end consumers.
is planning for 275 GW of renewable energy capacity. Leveraging on strengths for delivering better future
Historically, your Company has been engaged primarily in performance
fossil fuel fired electricity generation. Your Company is a key Your Company derives competitive edge from its strengths
stakeholder in ongoing energy transition and is committed and is confident of meeting future challenges in the sector.
to add 10 GW of own renewable power capacity. Your a. Project Management
Company takes cognisance of the challenges of adding
Your Company has adopted an integrated system for
renewable energy capacity in India and will add such
the planning, scheduling, monitoring and controlling of
capacity progressively.
approved projects under implementation. To coordinate
Your Company is also leading the way with installation of and synchronise all the support functions of project
100 KW floating solar PV Plant at its Rajiv Gandhi Combined management it relies on a three-tiered project management
Cycle Power plant in Kerala. system known as the Integrated Project Management Control
Your Company is also entrusted with the responsibility of System which integrates its engineering management,
adding 15 GW of solar power under National Solar Mission contract management and construction management
of Government of India. control centres.
Off-take and realisation Your company has successfully effected standardization,
bulk ordering of 660 MW and 800 MW units and Engineering
There have been concerns about the capacity addition
Procurement and Construction (EPC) contracting to reduce
programme undertaken by your company due to weak
engineering time and thereby reduce project execution
off-take and country presently being power surplus. In real
time.
terms, it may not be necessarily so because of restricted
off-take by Discoms and huge latent demand. Your company Your Company has added 13,395 MW capacity in 12th Plan
firmly believes that with structural reforms put in place in (2012-2017) exceeding the assigned capacity target of
the distribution segment through UDAY Scheme launched 11,920 MW in the Plan.
by GoI in November, 2015, economic growth of the country, NTPC’s Vindhyachal Super Thermal Power Station Stage -V
GoI’s mission of power to all by May,2018 and aspiration Project has been the Silver Winner in award category-Project
among the end users to consume more power, the demand Excellence in Mega-Sized Project 2016 by International
will pick-up . Project Management Association which is the highest
international honour for excellent project performance.
Almost, the entire output of the company’s power stations
has been contracted under long term PPAs. Further, your b. Operational Efficiency
Company produces power at a very competitive cost. The The operating performance of NTPC has been considerably
average tariff for financial year 2016-17 was ` 3.30/kWh as above the national average. During the financial year 2016-
against ` 3.19/kWh for the previous year. The increase was 17 PLF of NTPC coal stations was 78.59% against all India PLF
mainly on account of coal cess and increase in freight by of 59.88%. Over the years, NTPC has consistently operated
railways. Low cost of power mitigates off-take risks. Your at much higher operating efficiency as compared to All
Company has, for the 14th consecutive year, realised 100% India operating performance. Also DC of coal stations for
of its dues and is confident of maintaining its track record in FY 2016-17 was 92.80 % as against 92.29 % achieved in last
future also. Further, with extension of Tri-partite Agreements FY 2015-16
by most of the states, the risk of non-realization is mitigated In order to achieve cost-competitive, environment friendly,
to great extent. efficient & reliable power generation, the company has
Pooled Tariff for NTPC Stations adopted following strategies:-
Your Company is aware of its responsibility to provide Advance alert/support to stations through remote
cheaper power and has taken various measures to reduce (Special Analytics & Computational services center)
the fuel charges through coal swapping, flexibility in usage of analysis of critical operation parameters, which in turn
coal etc. Recently, your Company has brought-out concept improves system reliability, reduction of outages &
maintenance costs.
of fixed charge tariff pooling which envisages national merit
order operation of all NTPC stations which will effectively Reduction of forced outages through knowledge based
reduce the average energy charge rate (ECR) of all NTPC unit overhaul & maintenance practices.
stations and benefit all states. This will provide a framework Optimizing planned outage period through
for URS power from one region to be scheduled by other implementation of overhaul preparedness index,
41st Annual Report 2016-17
Management Discussion and Analysis | Annexure - I to Directors’ Report
64