NTPC Green Energy IPO Details, Financials, Valuation & Peers

NTPC Green Energy Limited (NGEL) is a wholly owned subsidiary of NTPC Limited, a ‘Maharatna’ public sector enterprise and India’s largest power producer. NGEL is the largest renewable energy public sector enterprise (excluding hydro) in India, with a focus on solar and wind power. As of June 30, 2024, NGEL’s operational renewable energy capacity stood at 3,071 MW in solar projects and 100 MW in wind projects, making it a key player in India’s green energy transition. NGEL’s project portfolio spans multiple states, offering diversified energy generation that mitigates location-specific risks. The company has signed long-term Power Purchase Agreements (PPAs) with central and state government agencies and public utilities, ensuring stable revenue streams. It is also actively expanding its pipeline, with 14,696 MW of projects under development, and 10,975 MW in various stages of the pipeline, reflecting significant growth potential. NGEL plays a vital role in supporting NTPC’s goal of achieving 45-50% non-fossil fuel-based capacity by 2032, with a target of 60 GW renewable energy capacity.

Key Points:

• Largest Renewable Energy PSU: NTPC Green Energy Limited is the largest renewable energy public sector company (excluding hydro) in terms of operational capacity as of June 30, 2024, and power generation in Fiscal 2024.
• Diversified Portfolio: NGEL operates solar (3,071 MW) and wind (100 MW) power projects across six states, minimizing risks from location-specific variability in energy generation.
• Strong Order Book: As of June 30, 2024, NGEL's project portfolio includes 2,925 MW of operational capacity and 11,771 MW of contracted and awarded projects. Additionally, the company has 10,975 MW of capacity under the pipeline.
• Long-Term PPAs: NGEL has secured long-term PPAs or Letters of Award (LoAs) with central and state government agencies, ensuring stable revenue for its operational projects.
• Government and Public Utility Clients: All of NGEL’s revenue-generating projects in the three months ended June 30, 2024, involved government agencies and public utilities, with an average PPA term of 25 years.
• Supporting India’s Energy Transition: NTPC Group, with its goal of 60 GW renewable energy capacity by 2032, relies on NGEL to drive its non-fossil-based energy portfolio expansion.
• Extensive Pipeline: As of June 30, 2024, NGEL’s capacity under the pipeline and portfolio totaled 25,671 MW, showcasing the company's robust future growth opportunities.