Corporate Carbon Accounting and Climate Responsibility:

A Case of India’s Largest Power Producer

National Thermal Power Corporation

(NTPC)

Group 1
Abhishek Kumar | Rahul Karkhanis | Shivaraj J | Simran Bains | Udayabhaskar S | Varun Dameera
 01 NTPC - Introduction
Electricity Production share by NTPC to the country & its GHG emissions

02 Energy Efficiency of NTPC

Coal requirement per unit electricity production and CO2 emission

Agenda 03 Carbon Footprint per Share

Links between NTPC’s share price and carbon imbedded in each share

04 GHG Intensity for 2005-10 period

Comparison of GHG Intensity for 2005-2010 period.

05 Mergers & Acquisitions: GHG PoV

Should M&A take place or not? Analysis from GHG perspective.

06 Steps taken & Way ahead

Recommendations to NTPC to reduce GHG Emissions
 01 NTPC - Introduction
Electricity Production share by NTPC to the country & its GHG emissions

02 Energy Efficiency of NTPC

Coal requirement per unit electricity production and CO2 emission

Agenda 03 Carbon Footprint per Share

Links between NTPC’s share price and carbon imbedded in each share

04 GHG Intensity for 2005-10 period

Comparison of GHG Intensity for 2005-2010 period.

05 Mergers & Acquisitions: GHG PoV

Should M&A take place or not? Analysis from GHG perspective.

06 Steps taken & Way ahead

Recommendations to NTPC to reduce GHG Emissions
 INTRODUCTION
NTPC- Largest Power Generating PSU
• 16% share in India’s total installed capacity, 25.44% share
in power generation
• Core business is engineering, construction and operation of
power generating plants
• 16 Coal based, 7 gas based, 7 joint venture projects
• Carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O),
emitted from a coal based power plant and need to be
estimated for NTPC

Indian Power Sector

• Coal contributed 70% Power Generation
• GHG Emission from coal were 41%
• NTPC contributed to 24% Coal Capacity

GHG Emission Accounting: Done at three levels

: Emission from Direct Emission due to Indirect emissions not
SCOPE 1 sources, owned or SCOPE 2 consumption of SCOPE 3 covered under scope 2 like
air travel, waste disposal
controlled by company electricity & heat
 RECENT STATISTICS
NTPC- GENERATING GROWTH FOR GENERATIONS
Efficiency: PLF of 68.2% against all India PLF of 55.9%

2,348 MW Renewable Capacity under construction

Acquired 6,408 MW of Power Assets in FY20

Avoided 49.61 tonnes of CO2 emissions

₹ 305 crore spent on CSR activities during FY20

62,901 MW 22% 70
17% Share in Total Share in Total POWER STATIONS
Installed Capacity Power Generation
 01 NTPC - Introduction
Electricity Production share by NTPC to the country & its GHG emissions

02 Energy Efficiency of NTPC

Coal requirement per unit electricity production and CO2 emission

Agenda 03 Carbon Footprint per Share

Links between NTPC’s share price and carbon imbedded in each share

04 GHG Intensity for 2005-10 period

Comparison of GHG Intensity for 2005-2010 period.

05 Mergers & Acquisitions: GHG PoV

Should M&A take place or not? Analysis from GHG perspective.

06 Steps taken & Way ahead

Recommendations to NTPC to reduce GHG Emissions
 Energy Efficiency Enhancement and GHG Emission
Mitigation
35000 300.00
30830 Power
30000
26350
27350 27850
28840
250.00 Generation
25000 23935 Year (B.U.) Coal (KT) Coal/B.U.(KT)
219 221 200.00
201 207 2000 130.1 73616 565.8416603
20000 189
171 2005 170.88 97029 567.8195225
150.00
15000 2006 188.67 104703 554.9530927
100.00 2007 200.86 111085 553.0468983
10000
2008 206.94 105046 507.615734
5000
50.00 2010 222.07 128181 577.2098888

0 0.00
1 2 3 4 5 6

Total capacity (MW) Total power generation (BU)

• The efficiency of power generation has increased since 2005 which can be seen from the capacity vs
generation graph.
• Coal requirement per B.U have also reduced over those years, leading to less GHG emissions.
 Keeping up with the National Commitment
0.80
0.72
0.70
0.64
• CAGR for period 2005-2010: -15.3%
0.59
0.60 • Expected GHG intensity in 2020: 0.05
0.50
0.50 0.45
kg/year
0.40
0.31 • GHG intensity to match national target of
0.30

0.20 25% reduction: 0.54 kg/year in 2020

0.10

0.00
2005.00 2006.00 2007.00 2008.00 2009.00 2010.00 Thus, NTPC is exceeding the expectations of
the national target of 25% reduction in GHG
CO2e 192.6 208.3 219.8 208 208 172 intensity
Revenue 266564 325344 369462 417913 461687 547046
 01 NTPC - Introduction
Electricity Production share by NTPC to the country & its GHG emissions

02 Energy Efficiency of NTPC

Coal requirement per unit electricity production and CO2 emission

Agenda 03 Carbon Footprint per Share

Links between NTPC’s share price and carbon imbedded in each share

04 GHG Intensity for 2005-10 period

Comparison of GHG Intensity for 2005-2010 period.

05 Mergers & Acquisitions: GHG PoV

Should M&A take place or not? Analysis from GHG perspective.

06 Steps taken & Way ahead

Recommendations to NTPC to reduce GHG Emissions
 Carbon Value & Footprint Per Share

Year 2005 2006 2007 2008 2009 2010

Carbon footprint in share

23 25 27 25 25 21
(kg Co2 per share)

Carbon price
1.04 1.04 1.23 1.25 1.16 0.34
(Rs/kgCo2)

Carbon value in each share

24.34 26.38 32.67 31.63 29.16 7.04
(Rs/share)

Actual share value considering

88 110 218 152 174 155
imbedded carbon

% carbon value per actual share price 22% 19% 13% 17% 14% 4%
 Carbon Value & Footprint Per Share
Carbon Value and Footprint per share
30 25%

25 20%
20
• Carbon footprint doesn’t have a
15%
15 distinct relationship with the share
10%
10 price
5%
5 • Carbon value as a percentage of
0
2005 2006 2007 2008 2009 2010
0% share price follows an overall
Carbon Footprint per share Carbon value per share decreasing trend

23 25 27 25 25 21

22% 19% 13% 17% 14% 4%

 01 NTPC - Introduction
Electricity Production share by NTPC to the country & its GHG emissions

02 Energy Efficiency of NTPC

Coal requirement per unit electricity production and CO2 emission

Agenda 03 Carbon Footprint per Share

Links between NTPC’s share price and carbon imbedded in each share

04 GHG Intensity for 2005-10 period

Comparison of GHG Intensity for 2005-2010 period.

05 Mergers & Acquisitions: GHG PoV

Should M&A take place or not? Analysis from GHG perspective.

06 Steps taken & Way ahead

Recommendations to NTPC to reduce GHG Emissions
 Maintaining 2005 Intensity Levels

Year 2005 2006 2007 2008 2009 2010

Actual GHG emission intensity levels 0.72 0.64 0.59 0.50 0.45 0.31

Actual GHG emissions 192.6 208.3 219.8 208 208 172

GHG Emission intensity level in 2005 0.72 0.72 0.72 0.72 0.72 0.72

Required GHG emissions at 2005 level 192.6 235.1 266.9 302.0 333.6 395.3

Emission Savings 0.0 26.8 47.1 94.0 125.6 223.3

 Maintaining 2005 Intensity Levels
Recomended vs Actual Emissions
450.0 • Even for maintaining the GHG
400.0
350.0 intensity at the 2005 levels, the gap
300.0
250.0 between the actual and
200.0
150.0
recommended emissions is
100.0
increasing significantly
50.0
0.0
2006 2007 2008 2009 2010
• Further, in spite of a decrease in
Actual Recommended overall emissions, the revenues are
Actual 208 220 208 208 172
increasing, indicating the efficiency
Recom. 235 267 302 334 395
of power generation of NTPC
 10% Reduction in GHG intensity 2006-10

Year 2005 2006 2007 2008 2009 2010

GHG EI with 10% reduction YoY 0.72 0.65 0.59 0.53 0.47 0.43

CO2e Emissions (MT) 192.6 211.6 216.2 220.1 218.9 233.4

Carbon value (Rs) 2.0E+11 2.2E+11 2.6E+11 2.8E+11 2.5E+11 7.9E+10

Carbon Value per share (Rs) 24.3 26.8 32.1 33.5 30.7 9.6

Actual Carbon Value per share (Rs) 24.3 26.4 32.7 31.6 29.2 7.0

Percent Difference 0 1.6 -1.6 5.8 5.2 35.7

 10% Reduction in GHG intensity 2006-10
Actual vs Recommended Carbon value per share
40.00

35.00 • Except 2007, all other years show a

30.00
reduction of more than 10% per year
25.00

20.00 in the GHG intensity

15.00
• In the most recent years, the gap has
10.00

5.00
further improved, with 35% lesser
0.00
2006 2007 2008 2009 2010
Carbon value per share than
Actual Recommended recommended for a 10% YoY
decrease
Actual 26.38 32.67 31.63 29.16 7.04

Recom. 26.79 32.14 33.48 30.68 9.55

 01 NTPC - Introduction
Electricity Production share by NTPC to the country & its GHG emissions

02 Energy Efficiency of NTPC

Coal requirement per unit electricity production and CO2 emission

Agenda 03 Carbon Footprint per Share

Links between NTPC’s share price and carbon imbedded in each share

04 GHG Intensity for 2005-10 period

Comparison of GHG Intensity for 2005-2010 period.

05 Mergers & Acquisitions: GHG PoV

Should M&A take place or not? Analysis from GHG perspective.

06 Steps taken & Way ahead

Recommendations to NTPC to reduce GHG Emissions
 To Merge or Not to Merge?
Scope 1 1992 2010 1992 2010 1992 2010

Parameter Vindhyachal TPP Unchahar TPP Merged entity

Non coking coal consumed (kt) 7386.75 34584.63 942.3036 10960.68 8329.054 45545.31

HSDO consumed (kt) 57.13052 0 2.110025 0 59.24054 0

LDO consumed (kt) 0.927132 0 0.255761 2.877306 1.182893 2.877306

Fuel oil consumed (kt) 2.156181 9.687189 0.62498 4.999839 2.781161 14.68703

Total 7446.964 34594.32 945.2944 10968.56 8392.259 45562.87

Scope 2 1992 2010 1992 2010 1992 2010

Parameter Vindhyachal TPP Unchahar TPP Merged entity

Auto electricity consumption (%
558.5223 2155.226 80.35002 1390.185 638.8723 3545.41
generated) (kT Co2 eq)
 To Merge or Not to Merge?
1992 2010 Co2 eq emited per Gwh of electricity generated

V-TPP U-TPP Merged V-TPP U-TPP Merged

1.280

2010 1.278

Scope 1 7447 945 8392 34594 10969 45563 1.281

Scope 2 559 80 639 2155 1390 45563 1.234

1992 1.519

1.205

CO2e/Gwh 1.20 1.52 1.23 1.28 1.28 1.28

0.00 0.20 0.40 0.60 0.80 1.00 1.20 1.40 1.60

Vindhyachal TPP Unchahar TPP Merged entity

• In 1992, it didn’t make sense to merge the two power plants, since the emissions per unit of power
generation was increasing for Vindhyachal TPP
• In 2010, the two TPPs were relatively in sync with each other, with no significant increase in the per unit
emissions. Hence, it made more sense to merge
 01 NTPC - Introduction
Electricity Production share by NTPC to the country & its GHG emissions

02 Energy Efficiency of NTPC

Coal requirement per unit electricity production and CO2 emission

Agenda 03 Carbon Footprint per Share

Links between NTPC’s share price and carbon imbedded in each share

04 GHG Intensity for 2005-10 period

Comparison of GHG Intensity for 2005-2010 period.

05 Mergers & Acquisitions: GHG PoV

Should M&A take place or not? Analysis from GHG perspective.

06 Steps taken & Way ahead

Recommendations to NTPC to reduce GHG Emissions
 Steps taken by NTPC to reduce GHG emissions

Afforestation to CenPeep - Centre for

mitigate the GHG Power Efficiency and
emissions, more than Environmental
01 1 million trees
planted during 2019-
02 Protection avoided
49.61 million tonnes
20. More than 35 of CO2 since 1996. It
million trees planted consists of periodic
till date. They also act assessments, field
as carbon sinks. tests, performance
(NTPC, 44th Annual gap analysis and
Integrated report, updation of action
2020) plan at all stations
Steps taken by NTPC to reduce GHG emissions
Fuel Diversification – Non fossil based capacity (Solar, Wind and
Hydro ) currently amounts to 4.495 GW. Goal is to reach 37 GW
capacity by 2032

Technology and Efficiency Upgradation – Early adopters of

03 supercritical boilers in India which has increased the efficiency by
8%. It saves 2% of fuel/ unit of power generated and 8% reduction
in emission intensity

Carbon Sink Development – In collaboration with ONGC, they are

developing Carbon Sink at Jhanor- Gandhar plant in Gujarat. It will
Four Pronged enable carbon capturing and utilisation
Decarbonisation Research & Development – Capturing CO2 from flue gases and
strategy converting it into hydrocarbon. This will ensure that carbon is
sequestered from the environment. Projects are under process for
CO2 to methanol plants at NTPC vindhyanchal
 Steps taken by NTPC to reduce GHG emissions

Coal based power plant are used by replacing some of the

coal(up to 10%) with biomass based fuel. Helpful in
04 reducing greenhouse emissions as it is a carbon neutral fuel

Utilisation of agro residue will cut down carbon emissions

and also discourage residue burning by farmers.

Biomass Co-firing and

Agro Residue for Power
Generation
Thank You