NTPC Seeks Renewables Unit Investor Before IPO

A Close Look into the Matter

According to officials aware of the developments, NTPC intends to begin ‘global roadshows’ to find investors for NREL. It will begin looking for a partner from April 2022, which would help increase the value of its IPO.

India is still highly reliant on coal for power generation and is the third-largest emitter in the world. With the aim to reduce dependency on coal, the government aims to ramp up its power generation through renewable sources by four times within the next decade.

NTPC has doubled its target for clean power generation to 60 gigawatts by 2032. Experts suggest that NREL will require significant equity money in order to meet this target, and bringing partners on board would be quite beneficial.

A senior executive states that the company is open to various kinds of investors- domestic or international energy firms, financing companies, energy utilities and others. However, the investor needs to have the financial backing to match NTPC’s ambition of 69 gigawatts.

Upcoming Renewable Power Projects of NREL

NREL is currently working on its mega solar power project in Khavda of Gujarat. This solar power park is one of the most ambitious renewable energy projects right now. It would have a capacity of 5 Gw of solar energy generation.

In addition, it is also planning to invite interested entities for setting up a 15 Gw solar module and cell manufacturing unit. The company has announced plans to set up India’s first green Hydrogen-based energy storage facility at Simhadri.

NTPC is also interested in exploring ways to generate clean energy from green methanol and green hydrogen. As per reports, it is looking to pilot a green hydrogen production project at Vindhyachal thermal power plant in Madhya Pradesh.

Bottom Line

Several reputed global firms, including energy players, equity firms, and pension funds, have significantly funded India’s renewable energy sector. The government hopes to rope in more international firms to meet its clean energy goals.

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Frequently Asked Questions

1. What is the current installed capacity of NTPC?

The total installed capacity of NTPC right now is 66 Gw. Of this, thermal power generation accounts for 61 Gw.

2. When was NREL established?

NTPC Renewable Energy Limited was set up in October 2020.

3. Which subsidiaries of NTPC are going public in the upcoming year?

Three subsidiary companies of NTPC will go public in 2022. These are NREL, NEEPCO (North Eastern Electric Power Corporation), and NTPC Vidyut Vpayar Nigam.

Disclaimer: This blog is exclusively for educational purposes and does not provide any advice/tips on investment or recommend buying and selling any stock.