NTPC Green ties up with NREDCAP for the big renewable energy venture
NTPC Green Energy Ltd. an arm of NTPC Ltd, will provide a renewable energy project to the tune of Rs 1.87 lakh crore to the New and Renewable Energy Development Corporation of Andhra Pradesh, better known as NREDCAP, in a strategic partnership. This will catalyze the development of 25 GW of solar, wind, and hybrid renewable energy projects, as well as an additional 10 GW of pumped hydro storage capacity. It will also entail green hydrogen production, including a target of 0.5 million metric tonnes per annum (MMTPA), and production of green ammonia and methanol derivatives.
The project is expected to have a significant impact on both the economy and employment in the region. It is estimated to create over 1,06,250 jobs and offer a financial benefit of Rs 20,620 crore over the next 25 years. The proposed development forms part of the Andhra Pradesh government’s ambitious Integrated Clean Energy Policy 2024. The government intends to achieve 78.5 GW in solar power, 35 GW in wind power, and 22 GW in pumped hydro storage capacity besides the generation of 1.5 MMTPA of green hydrogen in the following five years.
This collaboration is in line with the overall objectives of India to shift its focus towards cleaner sources of energy and de-carbonize. NTPC Green, a key player in Indian renewable energy, will look to strengthen the clean-energy capacity through this project. The venture is expected to make a sizeable contribution to the country’s green-energy aspiration.
IPO of NTPC Green
Besides these renewable energy initiatives, NTPC Green also recently came out with its initial public offering (IPO), which has been in a spotlight for investors. The Rs 10,000-crore IPO opened for subscription on 19 November and will close on 22 November. The IPO had seen a subscription rate of 93% by the end of the second day. The price range for the shares is between Rs 102–108 per share.
The draft red herring prospectus filed with the Securities and Exchange Board of India (SEBI) also indicates that a sizeable portion of the proceeds from the IPO will be used to repay some of its outstanding loans. The company will also invest the money into its renewable energy business, further strengthening its commitment to expanding its portfolio of green energy power capacities.
NTPC Green Renewable Energy Footprint
NTPC Green Energy Ltd. is one of the largest renewable energy public sector enterprises in India. As of June 2024, the company has a portfolio of 14,696 megawatts (MW) of renewable energy capacity, with 2,925 MW already operational. Additionally, it has 10,975 MW of capacity in the pipeline. This makes NTPC Green one of the top 10 clean energy companies in the country in terms of both operating capacity and power generation.
The company is well-positioned to contribute significantly to India’s renewable energy targets and climate goals. This partnership with NREDCAP along with the continued expansion of NTPC Green’s renewable energy assets further demonstrates the company’s commitment to enabling India’s low-carbon economy.
Impact on Employment and Economy
India’s renewable energy sector will be a leader in job creation over the coming years. NTPC Green and NREDCAP will together generate over 1,06,250 jobs which will contribute effectively to the local economy in Andhra Pradesh and further. The financial benefits generated over 25 years from this project amount to Rs 20,620 crore that will surely support regional economic development and, more importantly, fill in the alarming need for sustainable and clean energy solutions.
It aligns with the larger economic and environmental objectives of this great nation. As India moves toward an electric energy future while focusing on reducing carbon footprints, this project and many others like it will be critical in shaping the future face of energy for India.
Long Term Outlook and Investor Interest
NTPC Green Energy’s IPO launch has attracted much attention from investors, and analysts have rated it for a long-term investment in India’s strengthening renewable energy market. Leveraging the resources and expertise of NTPC Ltd., the company is one of the major players in the sector-positioned for continued growth in the coming years.
While experts say the Indian renewable energy market is competitive, NTPC Green Energy, having established itself and with large-scale projects, is well-poised for success. The concentration of building upon expansion in its renewable portfolio, including the integration of production of green hydrogen, will enable the company to stay atop of an industry trend and be seen as part of the general transformation India makes towards a more sustainable energy system.
Conclusion
NTPC Green Energy Ltd.’s partnership with NREDCAP to develop renewable energy projects worth Rs 1.87 lakh crore represents a major step forward in India’s clean energy journey. The project will not only enhance the country’s renewable energy capacity but also create thousands of jobs and deliver significant financial benefits over the next 25 years. NTPC Green, with its ambitions growth plans and an IPO launch, is well equipped to be at the forefront of India’s renewable energy growth and face head-on the tremendous challenges posed by a rapidly changing energy landscape.
Source: The details provided are based on official reports and press releases regarding NTPC Green Energy Ltd. and its renewable energy projects in partnership with NREDCAP.