NTPC lays out battery storage, nuclear and coal gasification roadmap

NTPC has outlined a broad set of operational and technology initiatives that will complement its long-term expansion strategy, with the company focusing on battery energy storage, nuclear power, coal gasification and more flexible thermal generation as it adapts to a power system with rising renewable energy penetration.

At its 22nd Annual Analysts and Institutional Investors Meet held on July 27, 2026, the company said its revised corporate plan targets 150 GW of installed capacity by FY32 and 250 GW by FY37. Alongside the expansion plan, management detailed how NTPC intends to improve grid flexibility, diversify generation technologies and optimise existing assets.

The company reported its highest-ever standalone Profit After Tax (PAT) of Rs 23,162 crore in FY26. For the first quarter of FY27, standalone PAT stood at Rs 5,343 crore, up 12% year-on-year.

Battery storage

A major element of NTPC’s strategy is the deployment of Battery Energy Storage Systems (BESS) alongside existing thermal power stations under the regulated returns framework, a policy that the company said it helped develop with the government and regulators.

NTPC’s BESS portfolio currently stands at 38.9 GWh, including 6.62 GWh under execution. Of this, 5 GWh will be deployed at thermal power stations under regulated tariffs. The company also has a pipeline of 30.4 GWh for non-solar hours, of which 18.6 GWh has already been tendered.

According to NTPC, co-locating battery storage with thermal stations will enable electricity to be stored during periods of high solar generation and lower demand before being discharged during evening peak demand. The approach is expected to improve plant utilisation, reduce operational stress caused by frequent ramping and facilitate greater renewable energy integration.

“This is the first time, and you must appreciate that NTPC had worked with the regulator and the ministry to come out with this policy that it will become the part of the thermal plant itself… 5 gigawatt is going to be very helpful, which is on the same regulated tariff,” said Gurdeep Singh, Chairman and Managing Director, NTPC.

The company is also evaluating technologies beyond lithium-ion batteries through its R&D arm, NETRA. These include a 3 MWh vanadium redox flow battery, a 144 MWh CO₂ battery at the Kudgi power station scheduled for commissioning by October-November 2026, and sodium- and iron-based battery technologies.

Explaining the investment rationale, Director (Finance) Jaikumar Srinivasan said, “Battery today, storage is not having a capacity attribute from the point of view of growth, but however from the investors’ point of view, it is what has been invested and what is the return.”

Nuclear plans

NTPC also outlined its long-term nuclear expansion strategy, targeting 30 GW of nuclear capacity by FY47.

The company is exploring 34 potential sites across 10 states, including Andhra Pradesh, Madhya Pradesh, Gujarat, Maharashtra, Odisha, Bihar, Chhattisgarh, Tamil Nadu and Karnataka.

Its flagship project is the 2,800 MW Mahi Banswara Nuclear Power Project, which is being developed through the ASHVINI joint venture with Nuclear Power Corporation of India Limited (NPCIL). NTPC said the Notice Inviting Tender (NIT) for the nuclear island mega EPC package was issued on July 15, 2026.

The company is pursuing multiple reactor technologies, including Pressurized Heavy Water Reactors (PHWRs), Pressurized Water Reactors (PWRs) and Fast Breeder Reactors.

“Close to 34 sites are being explored… It’s AP, MP, Gujarat, Maharashtra, Odisha, Bihar, Chhattisgarh, and we are also exploring with Tamil Nadu and Karnataka. Already we have completed one study and we have submitted also. So things are moving at a pace,” said K. Shanmugam Sundaram, Director (Projects), NTPC.

Coal gasification

NTPC is also advancing coal gasification as part of its strategy to improve utilisation of domestic coal resources and existing gas-fired assets.

The company plans to convert coal into methane-rich Synthetic Natural Gas (SNG), which can then be supplied to gas-based power plants for operation during peak demand periods.

“We are also looking at how we will be able to utilize our gas-based power plants. We can inject gas at the near to our coal gasification and draw the gas at the power stations and run those power stations during the peak hours,” Singh said.

The initiative aligns with the government’s allocation of Rs 37,000 crore to support coal gasification.

NTPC also said all of its coal mining assets have been transferred to NTPC Mining Limited as part of a broader strategy to expand into additional mineral resources. The company produced 48.66 million tonnes of coal during FY26, meeting about 18% of its coal requirement through captive mines. This share is expected to increase to 25% by FY30.

Flexible thermal plants

To address increasing renewable energy penetration, NTPC is studying the development of smaller thermal generating units designed specifically for daily start-stop operation.

According to the company, conventional thermal plants are increasingly required to reduce output during daytime solar generation and ramp up rapidly in the evening, affecting efficiency and increasing equipment wear.

NTPC is pursuing multiple approaches, including BESS deployment, policy advocacy for uniform technical minimum operating standards and new thermal plant designs capable of daily cycling.

“You would have seen that our engineering-cum-Director Projects team is working on whether we can design some of the smaller units which is suitable for the cycling in the sense that it can be stopped in the morning and start in the evening. So, just switch it off at sunrise and turn it on at sunset every day,” said Ravindra Kumar, Director (Operations), NTPC.

Singh said such units could eventually be deployed on a “sizable” scale, potentially “to the tune of tens of gigawatt,” subject to grid connectivity approvals and a viable commercial framework.

Investment outlook

NTPC plans to invest around Rs 16.8 lakh crore between FY26 and FY37, including Rs 1.08 lakh crore during FY26-FY27, Rs 5.97 lakh crore between FY28 and FY32, and Rs 9.63 lakh crore during FY33-FY37.

The company reported group PAT of Rs 27,546 crore in FY26 and maintained a dividend payout ratio of 36-40%, declaring a total dividend of Rs 9.00 per share comprising an interim dividend of Rs 5.50 per share and a final dividend of Rs 3.50 per share.

“The future of India is being built today, and NTPC is proud to be leading that journey,” said Jaikumar Srinivasan.