NTPC Green Energy IPO: A New Entrant to Green Energy Industry

India’s renewable energy landscape is set to expand further with the upcoming Initial Public Offering (IPO) of NTPC Green Energy Limited. The company, a wholly-owned subsidiary of NTPC Limited, is preparing to launch a ₹10,000 crore IPO, scheduled for subscription from November 19 to November 22, 2024. NTPC Green Energy IPO allotment is expected to be finalised on November 25, 2024.

Use of IPO Proceeds

NTPC Green Energy plans to utilise the funds raised from the IPO for the following purposes:

• Investment in NTPC Renewable Energy Limited (NREL), including repayment or prepayment of some of NREL’s outstanding borrowings.
• General corporate purposes to support its growth and expansion in the renewable energy sector.

Incorporated in April 2022, NTPC Green Energy is dedicated to renewable energy development through both organic and inorganic routes. As of August 31, 2024, the company had an operational capacity of 3,071 MW from solar projects and 100 MW from wind projects, spanning 6 states in India. The company’s expansion into the IPO market will further solidify its role in India’s green energy transition.

Competitive Landscape: NTPC Green Energy vs. Adani Green Energy

Following its IPO listing on November 27, 2024, NTPC Green Energy IPO will compete directly with other major players in the renewable energy sector, notably Adani Green Energy Limited, which is already listed on the stock exchanges. 

Total Renewable Energy Capacity Crosses 200 GW

India has reached a significant milestone in its renewable energy sector, surpassing a total renewable energy capacity of 200 GW (gigawatt). This achievement is a testament to the country’s increasing commitment to transitioning to cleaner energy sources and supports its ambitious goal of generating 500 GW from non-fossil sources by 2030. This progress aligns with India’s broader efforts to tackle climate change and ensure sustainable energy solutions for the future.

According to the Central Electricity Authority, India’s total renewable energy-based electricity generation capacity now stands at 203.18 GW as of October 2024. This marks a 24.2 GW (13.5%) increase from the previous year, when the total capacity was 178.98 GW in October 2023. This remarkable growth underscores India’s rapid advancements in the renewable energy sector and its path toward achieving clean energy goals.

Growth of Non-Fossil Fuel Capacity

India’s total non-fossil fuel electricity generation capacity, which includes renewable energy and nuclear power, reached 211.36 GW in October 2024. This represents a rise from 186.46 GW in 2023. With the country’s total electricity generation capacity now at 452.69 GW, renewable energy accounts for 46.3% of the total installed capacity, marking a significant portion of the national power mix.

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.