Assessing the decarbonisation pathways of India's power sector giants

Assessing the decarbonisation pathways of India’s power sector giants

The report examines how NTPC and Tata Power need massive capital to transform into clean energy companies, requiring access to foreign capital markets through sustainability-linked bonds and loans. To achieve India’s 2070 net-zero target, which needs US$10.1 trillion (with US$8.4 trillion for the energy sector alone), these companies must establish science-based emissions reduction frameworks. Currently, both companies’ targets fall short of global peers like Enel – NTPC aims for only 17% emissions reduction by 2032 versus Enel’s 80% by 2030, while Tata Power targets 20% by 2030. The report recommends both companies create formal sustainability-linked finance frameworks with science-based targets to unlock new capital sources, while also addressing their current coal assets – NTPC needs to accelerate coal plant decommissioning and stop new construction, while Tata Power must expedite plant closures and exit Indonesian coal investments.