{
  "id": 4175361,
  "title": "How India’s top thermal power producer is making more profits — from renewables",
  "url": "https://urgent.news/2026/08/29/how-indias-top-thermal-power-producer-is-making-more-profits-from",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-08-29T10:56:59.000Z",
  "source": {
    "name": "The Indian Express",
    "slug": "the-indian-express",
    "url": "https://indianexpress.com/article/explained/explained-economics/ntpc-profits-renewables-thermal-power-fixed-charges-explained-10854728/"
  },
  "original_language": "en",
  "account": "India’s largest power producer, NTPC Ltd, has witnessed faster profit growth compared to its revenue growth in the past three years, despite surging commodity prices. This growth is attributed to the payments received by thermal power generators, known as fixed charges, for maintaining plant availability in the grid. Fixed charges are payments received by thermal power generators for keeping their power plants available to generate electricity, irrespective of actual production. While renewable energy generation reduces thermal power generation, it does not lower the payments made to thermal generators, as generators continue to receive fixed charges as long as their capacity remains available on the grid. NTPC chairman Gurdeep Singh explained that the company's profit comes primarily from fixed charges, while its revenue comprises fixed charges and energy charges, including fuel costs. As India ramps up renewable energy capacity, coal-fired power plants face the challenge of reducing generation when renewable output is high and ramping up quickly when it falls. Lowering the Minimum Technical Load (MTL) would allow coal plants to back down during periods of high renewable generation while remaining available to meet demand when required. However, this transition faces resistance from the industry due to increased thermal and mechanical stress on equipment. The shift to a greater share of renewable energy creates a cost challenge for distribution companies (DISCOMs), who continue to pay capacity charges for thermal capacity regardless of actual power consumption. This creates a potential cost challenge for DISCOMs, as they may need thermal capacity to remain available during periods of low renewable generation while using less of that capacity during periods of high renewable output.",
  "summary": null,
  "key_points": [
    "NTPC Ltd profits outpace revenue growth over three years",
    "Fixed charges compensate thermal plants for plant availability",
    "Renewable energy growth creates cost challenge for DISCOMs"
  ],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}