NTPC Green Energy and Andhra Pradesh Collaboration For Renewable Projects

IPO-bound NTPC Green Energy has entered into a joint venture (JV) with the New and Renewable Energy Development Corp. of Andhra Pradesh to develop a portfolio of renewable energy projects worth ₹2 lakh crore. This initiative, announced by the Government of Andhra Pradesh, aims to contribute significantly to the state’s clean energy goals.

Scope and Focus of the Joint Venture

The JV will focus on developing 25 GW of solar, wind, and hybrid energy projects, alongside 10 GW of pumped hydro storage and 0.5 million metric tonnes (MMTPA) of green hydrogen and its derivatives annually. The ambitious renewable energy plan is expected to generate over 106,000 jobs and deliver financial benefits of ₹20,620 crore to the state over the next 25 years.

Aligned with the state’s Integrated Clean Energy Policy, the JV will contribute to the target of 78.50 GW of solar power, 35 GW of wind energy, 22 GW of pumped hydro storage, and 1.5 MMTPA of green hydrogen production within the next five years. The first phase of the partnership is expected to be completed by May 2027.

NTPC Green Energy’s Green Hydrogen Hub in Pudimadaka

NTPC Green Energy is also advancing its green hydrogen hub project in Pudimadaka, Andhra Pradesh. The company plans to invest ₹1.85 lakh crore in the facility, which will produce 1,500 tonnes of green hydrogen daily. This project is expected to play a critical role in India’s green hydrogen ambitions.

To support its green hydrogen plans, NTPC is exploring partnerships with several international companies, including Japan’s Toyo Engineering Corp., Norway’s Getek AS, and Australia’s Fortescue. The Pudimadaka facility will adopt a plug-and-play model for green hydrogen production, enhancing scalability and efficiency.

NTPC Green Energy’s Financial Performance

NTPC Green Energy reported a net profit of ₹140 crore for the June quarter, with revenue standing at ₹580 crore. The company is preparing for its public listing, which is set to take place on Wednesday. The company has set a price band of ₹102-108 per share, with investors able to bid for 138 shares in one lot and multiples thereafter. NTPC Green Energy IPO consists entirely of fresh equity shares, with no Offer For Sale (OFS) component. This IPO ranks as the 3rd -largest of 2024, following Hyundai Motor India’s ₹27,870 crore issue and Swiggy’s ₹11,300 crore offering.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.