NLC to add 650 MW of solar power capacity this year

NLC India Accelerates Solar Expansion with Ambitious 650 MW Target

NLC India, a leading public sector undertaking in the energy sector, has announced plans to add 650 MW of solar power capacity this year. This move underscores the company's commitment to transitioning towards cleaner energy sources, moving away from its traditional lignite-based power generation. With solar projects popping up across sun-drenched regions, NLC is positioning itself as a key player in India's renewable revolution. The addition will significantly boost its current installed renewable capacity, which already stands at over 1,484 MW, including a mix of ground-mounted, rooftop, floating solar, and wind projects. Experts see this as a timely step, given the rising demand for green power from industries and households alike.

The company's solar journey has been marked by steady growth over the years. It kicked off with a 10 MW plant in Neyveli back in 2015, supplying power to Tamil Nadu's grid under a long-term agreement. This was followed by larger ventures, like the 130 MW project at the same location and massive 500 MW and 709 MW installations in Tamil Nadu between 2018 and 2019. More recently, in November 2025, NLC commissioned 106 MW as part of a 300 MW solar initiative in Rajasthan's Bikaner district. These projects not only generate clean electricity but also secure stable revenue through power purchase agreements with state utilities.

Strategic Partnerships and Government Backing Fuel Growth

To achieve this year's 650 MW target, NLC India is leveraging joint ventures and fresh investments. A notable partnership is with PTC India, forming a joint venture aimed at developing up to 2 GW of renewable projects, starting with 500 MW in the first phase. This collaboration will cover solar, wind, hydro, battery storage, and even green ammonia technologies. Power from these ventures will be sold to distribution companies, government bodies, and commercial users, ensuring broad market reach. Additionally, the Union Cabinet has greenlit a whopping ₹7,000 crore investment through NLC India Renewables Ltd., its dedicated clean energy arm.

"This ₹7,000 crore infusion will turbocharge our solar and wind projects, helping us meet national climate goals while creating jobs and cutting emissions across the regions we operate in," said a senior NLC India executive.

Financial support has been robust, with a $100 million green loan from Sumitomo Mitsui Banking Corporation in December 2025 to fund renewable expansions. NLC has also secured letters of acceptance for 110 MW ground-mounted solar in Uttar Pradesh and entered power purchase pacts for projects in Rajasthan. These tie-ups with state entities like RVUNL highlight the company's expanding footprint. Plans extend to states like Gujarat, Madhya Pradesh, Bihar, and more, with multi-gigawatt ambitions in solar parks equipped with battery storage for round-the-clock power.

Broader Impact on India's Clean Energy Landscape

NLC India's solar push aligns perfectly with India's goal to ramp up renewable capacity to meet growing energy needs sustainably. By adding 650 MW this year, the company contributes to reducing reliance on fossil fuels, curbing carbon emissions, and enhancing energy security. Projects in arid areas like Bikaner and Pugal solar parks in Rajasthan are harnessing vast open lands for massive solar farms, often paired with battery energy storage systems to store excess daytime power for evening use. This innovation addresses intermittency issues, making solar more reliable.

The ripple effects are felt locally too. These initiatives promise thousands of jobs in construction, operations, and maintenance, spurring economic activity in rural belts. Skill development programs tied to these projects will train locals in solar installation and upkeep, fostering long-term employment. Nationally, NLC's efforts support the country's pledge to achieve net-zero emissions by 2070. With tenders for land acquisition and turnkey projects underway, the company is gearing up for rapid execution. Challenges like land procurement and grid integration persist, but NLC's track record suggests they are well-equipped to overcome them.

In summary, NLC India's plan to add 650 MW of solar capacity this year marks a pivotal step in its green transformation. Backed by partnerships, government approvals, and smart financing, this expansion not only grows the company's portfolio but also advances India's sustainable energy agenda, promising cleaner air and brighter economic prospects.