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NTPC inks MoU with Energy Vault for Gravity Based Energy Storage | How will this deal benefit NTPC?

NTPC inks MoU with Energy Vault for Gravity Based Energy Storage | How will this deal benefit NTPC?

Published on 02 May 2022 .Views 22 .Comments 0
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National Thermal Power Corporation Limited or NTPC is India’s largest energy conglomerate with roots planted way back in 1975 to accelerate power development in India. Since then, it has established itself as the dominant power major with a presence in the entire value chain of the power generation business. NTPC became a Maharatna company in May 2010. As of January 2020, there are 10 Maharatnas CPSEs in India. NTPC is ranked No. 2 Independent Power Producer (IPP) in Platts Top 250 Global Energy Company Rankings. Recently NTPC has signed an MoU (Memorandum of Understanding) with a Swiss-based company called Energy Vault. So, what are the prospects of this MoU, and how is this beneficial for NTPC. Let’s understand this agreement in detail in this article as we move ahead.

MoU with Energy Vault:

  • Energy vault is a leader in sustainable and grid-scale energy storage solutions and they have a technology for which NTPC has signed MoU named Gravity Based Energy Storage System.
  • Energy Vault’s mission is to make sustainable, carbon-free energy a reality and this collaboration will help them to achieve their goal with the expansion into one of the largest global markets for energy.
  • As NTPC is trying to contribute to renewable energy and the government is also supporting this sector through various schemes, NTPC has taken a step toward decarbonizing India’s economy.
  • The main purpose of this collaboration is to make a strategic partnership with the energy vault to use gravity-based energy storage technology and software solutions based on the outcome of a joint feasibility study.
  • The technology also offers beneficial utilization of coal ash for manufacturing composite blocks for Energy Vault's gravity-based energy storage system.
  • Gravity Storage is a concept with which unprecedentedly large quantities of power can be stored for a long time, and can be made available again when the electricity demand is high.

Advantages of Gravity Based Energy Storage System:

  • Highly efficient and durable.
  • The carbon footprint is very low.
  • Energy consumption is also very low.

Disadvantages of Gravity Based Energy Storage System:

  • Not feasible for small-scale storage stores.
  • Loss of energy.
  • As technology is new, the proper review is not available.

What Should Shareholders Do?

After signing this MoU NTPC will get the first-mover advantage and will be able to contribute to achieving the decarbonization in a very efficient manner. Hence, this agreement could work successfully for the company in the future period, and hence one should keep track of developments of these deals in the coming period as well.

Disclaimer: The information here is provided for reference purposes only and should not be misconstrued as investment advice. Under no circumstances does this information represent are commendation to buy or sell stocks or MF.

Originally Published On:https://blog.investyadnya.in/ntpc-inks-mou-with-energy-vault-for-gravity-based-energy-storage-how-will-this-deal-benefit-ntpc%ef%bf%bc/

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