NTPC REL Signs 1,200 MW Solar Power Deal with PTC

NTPC Renewable Energy Limited (NTPC REL) has signed a power purchase agreement with PTC India Limited to supply 1,200 megawatts of solar power. The deal, announced on March 28, 2025, runs for 25 years.

Under the agreement, PTC will buy electricity from NTPC REL's upcoming solar projects. The company did not specify the exact locations of these projects. But it said they will be built in multiple states across India.

What the deal means

This is one of the larger single solar PPAs signed in India recently. For NTPC REL, it locks in a buyer for a big chunk of its planned capacity. For PTC, it adds a large volume of renewable power to its trading portfolio.

PTC is a state-run power trading company. It buys electricity from generators and sells it to state utilities and other bulk buyers. The company has been increasing its renewable energy trades in recent years.

NTPC REL is the clean-energy arm of NTPC, India's largest power generator. The parent company has set a target of 60 gigawatts of renewable capacity by 2032. NTPC REL is the main vehicle for reaching that goal.

Solar growth in India

India's solar capacity has grown fast. As of February 2025, total installed solar capacity stood at about 90 GW. The government wants to hit 500 GW of renewable capacity by 2030. Solar is expected to make up the bulk of that.

Large PPAs like this one help developers raise money. Banks and investors want to see long-term contracts before they lend. A 25-year deal with a creditworthy buyer like PTC reduces risk.

The tariff was not disclosed. But solar tariffs in India have fallen sharply in the last decade. They now hover around ₹2.50 to ₹3.00 per kilowatt-hour for large projects. That is cheaper than coal power in many cases.

Challenges ahead

Land acquisition remains a problem for solar developers in India. Finding large, contiguous plots of land is hard. Delays in getting grid connectivity also slow projects down.

Another issue is payment risk. Some state electricity boards pay late. PTC acts as an intermediary, which can help. But it does not eliminate the risk entirely.

NTPC REL has a pipeline of over 10 GW of renewable projects in various stages. The company says it is on track to meet its targets. This PPA will help it move some of those projects to financial close.

The bigger picture

India needs to add about 50 GW of renewable capacity every year to meet its 2030 target. That is a big jump from the current pace of around 15-20 GW per year.

Deals like the one between NTPC REL and PTC show that demand for solar power is strong. But the pace of new project commissioning needs to pick up. Supply chain issues, especially for solar modules, have eased in recent months. That could help.

PTC has also signed similar deals with other developers. In 2024, it signed a 1,000 MW solar PPA with a private developer. The company is positioning itself as a key player in the renewable energy trading market.

NTPC REL, for its part, is also looking at hybrid projects that combine solar and wind. It has floated tenders for such projects. The company says hybrid projects can offer more stable power output than solar alone.

The 1,200 MW solar deal is a step forward. But it is just one piece of a much larger puzzle. India's clean energy transition will need many more such agreements, and faster execution on the ground.