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From Lignite To Lithium Era: NLC India Ramps Up Renewable, BESS Expansion Photograph: (AI)
State-run power producer NLC India Ltd is rapidly reshaping itself from a lignite-heavy utility into a diversified renewable energy player, with large-scale solar parks, battery energy storage systems (BESS) and pumped storage projects emerging as key pillars of its long-term growth strategy.
At its FY26 investor meet, the company outlined an aggressive clean energy roadmap that aims to take its renewable energy capacity to more than 10 GW by 2030, matching its thermal power portfolio and creating a near 50:50 balance between conventional and green power assets.
The company currently has 734 MW of operational renewable capacity and another 5.81 GW under implementation and development, of which around 2.5 GW is already under construction. NLC India generated a record 2.26 billion units of renewable energy during FY26, while also commissioning 303 MW of fresh renewable capacity, including a 300 MW solar project in Rajasthan.
Management indicated that the renewable expansion pipeline is increasingly being driven through competitive bidding. Over the past six months alone, the company secured nearly 2 GW of renewable energy tenders from agencies including Solar Energy Corporation of India (SECI), Gujarat and other state utilities.
Among the key wins was a 600 MW solar project coupled with a 1,800 MWh battery energy storage system awarded through SECI’s competitive bidding process. The company also secured battery storage projects in Tamil Nadu and Punjab, underlining a growing strategic pivot toward energy storage-linked renewable projects.
NLC India’s management repeatedly stressed during the interaction that battery storage would become indispensable for large-scale renewable integration in India. Executives said the company was “aggressively entering” the BESS segment, viewing storage infrastructure as critical to stabilising renewable power supply and grid operations.
The company already operates one of the early utility-scale battery storage deployments in the country through its Andaman renewable project, where solar generation integrated with battery storage helped reduce diesel dependence. Management said the system has been operating successfully for around four years and has given the company operational confidence to scale up storage projects nationally.
The current storage portfolio includes a 500 MWh BESS project in Tamil Nadu, a 1,800 MWh storage-linked SECI project and another large storage order from Punjab. Most of these projects are expected to be completed within 18 months.
Executives said NLC India continues to target returns of over 12% on renewable and storage investments, while falling module prices and improving efficiencies are helping improve project economics. The company said newer solar projects using bifacial modules and tracker-based systems are expected to achieve capacity utilisation factors of over 30%, significantly higher than older assets.
Rajasthan remains a major renewable hub for the company. Apart from the already operational 300 MW project, NLC India has another 810 MW renewable pipeline in the state, with land acquisition largely completed and transmission infrastructure progressing. The company is also planning up to 1 GW of renewable capacity in Assam, where land parcels for initial phases have already been identified.
Alongside battery storage systems, NLC India is also evaluating pumped storage projects as part of its renewable balancing strategy. The company is currently preparing a detailed project report for a 750 MW pumped storage project in Odisha.
In a significant monetisation move, NLC India has transferred 1.4 GW of operational renewable assets into its subsidiary, NLC India Renewables Ltd (NIRL). The government has also approved the listing of NIRL and dilution of up to 25% stake through a public offering, potentially unlocking value from the company’s renewable portfolio.
The transition marks a notable strategic shift for the PSU, whose identity has historically been tied to lignite mining and thermal generation. With utility-scale solar, battery storage and renewable-linked transmission planning now taking centre stage, NLC India appears to be positioning itself as a long-term clean energy infrastructure player rather than just a conventional power producer.
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