ONGC’s recent strategic moves are sending ripples through India’s energy sector, signaling a bold push towards renewable energy and energy storage solutions. The state-owned Oil and Natural Gas Corporation (ONGC) has approved a significant investment of Rs1.2bn ($13.84m) in its subsidiary, ONGC Green, to acquire PTC Energy. This investment, announced on 24 February 2025, will be made through a rights offer of equity shares, as per the share purchase agreement signed on 13 September 2024. The acquisition of PTC Energy will be fully funded by the Rs1.2bn investment, with ONGC Green utilising the equity share capital proceeds for the acquisition. This move is a clear indication of ONGC’s commitment to expanding its footprint in the renewable energy sector, and it is likely to spur similar investments from other major players in the industry.
ONGC’s board has also approved the replacement of a Rs750m corporate guarantee on behalf of ONGC Green for PTC Energy. This financial backing underscores ONGC’s confidence in the potential of PTC Energy and its role in the company’s broader strategy. The acquisition of PTC Energy is expected to bolster ONGC Green’s capabilities in the renewable energy sector, potentially leading to increased competition and innovation in the market. The market responded to ONGC’s announcement with a slight dip in share prices, ending at Rs234.35, down by Rs5.55, or 2.31% on the Bombay Stock Exchange. This reaction could be attributed to investor uncertainty about the immediate financial implications of the acquisition, but it also highlights the potential for long-term gains as ONGC Green integrates PTC Energy’s assets and capabilities.
In a parallel development, Tata Power Renewable Energy (TPREL), a subsidiary of the Tata Power Company, has announced a partnership with ONGC to explore opportunities within the battery energy storage system (BESS) value chain. This non-binding memorandum of understanding (MoU) was signed at India Energy Week 2025, held in New Delhi from 11 February to 14 February. The partnership aims to enhance India’s energy security through renewable energy and advanced storage solutions. The collaboration will focus on a range of applications, including utility-scale energy storage systems, grid stabilisation, renewable energy integration, and electric vehicle charging infrastructure. Additionally, the partnership will explore industrial and commercial energy storage applications, as well as microgrid and back-up power solutions. This collaboration is a significant step towards addressing the challenges of energy storage and grid integration, which are critical for the widespread adoption of renewable energy sources.
The partnership between ONGC and TPREL is likely to accelerate the development of advanced energy storage technologies in India. By leveraging ONGC’s expertise in the energy sector and TPREL’s experience in renewable energy, the collaboration could lead to innovative solutions that enhance energy security and sustainability. This partnership is also expected to drive investment in research and development, fostering a more dynamic and competitive energy storage market. The collaboration could also pave the way for similar partnerships between other energy companies, further boosting the sector’s growth and innovation.
The recent developments at ONGC and its partnership with TPREL are likely to shape the future of India’s energy sector. The acquisition of PTC Energy and the focus on energy storage solutions indicate a strategic shift towards renewable energy and sustainability. This move is expected to drive competition, innovation, and investment in the sector, ultimately leading to a more resilient and sustainable energy landscape in India. The collaboration between ONGC and TPREL is a testament to the growing importance of energy storage in the transition to renewable energy sources. As the sector continues to evolve, these strategic moves are likely to set new benchmarks for innovation and sustainability in the energy sector.
