India ranks as the world’s third-largest energy consumer. With ambitious goals, the nation aims to decrease its carbon intensity by less than 45% by the decade’s end, achieve 50% renewable energy in its power mix by 2030, and attain net-zero carbon emissions by 2070. Additionally, India targets 500 GW of renewable energy capacity by 2030.
In the past 8.5 years, India has seen a remarkable 396% increase in non-fossil fuel capacity, totaling over 198.75 GW. Specifically, solar energy capacity has surged by 30 times in the last 9 years, reaching 81.81 GW as of March 2024.
Looking ahead, the Indian government aims to produce 5 million tonnes of green hydrogen by 2030, supported by 125 GW of renewable energy capacity.
Here are four PSU stocks that have plans to list their green energy entities in the upcoming years.
NTPC Ltd
NTPC Renewable Energy Ltd. (NTPCREL), a wholly owned subsidiary of NTPC Limited, India’s largest power utility, is engaged in deploying expansive solar, wind, and hybrid projects across the nation. Additionally, it is spearheading the development of gigawatt-scale renewable energy parks and projects in various states under the Government of India’s UMREPP (Ultra Mega Renewable Energy Power Park) scheme.
NTPC Green Energy Ltd is gearing up to launch its IPO in the fiscal year ending March 2025. The company’s aims to divest 25% of its green energy division to the public, with the objective of securing capital for the expansion of its non-fossil fuel ventures.
The green energy arm of NTPC is likely to file a draft red herring prospectus(DRHP) by July for listing on the stock exchanges, paving the way for a Rs 10,000 crore IPO by November 2024. Recently, NTPC Green Energy Ltd. (NGEL) has finalized its selection of investment bankers for this impending listing.
In addition to its IPO plans, the company aims to augment its renewable energy capacity by 4 to 5 gigawatts (GW) and coal-fired power capacity by 3 GW by the end of March 2025.
The NTPC Green Energy IPO plans to establish a 60-GW renewable energy portfolio over the next decade.
SJVN Ltd
SJVN Green Energy Limited is a subsidiary of SJVN Limited, a Mini Ratna, Category-I, and Schedule ‘A’ Central public sector enterprise under the administrative control of the Ministry of Power, Government of India.
SJVN Green Energy Limited develops renewable energy projects, particularly solar projects. The company has plans to develop solar projects with a capacity of more than 1.3 GW in Maharashtra under the Mukhya Mantri Saur Krushi Vahini Yojana 2.0.
SJVN Green Energy Limited has planned for an IPO, which is expected to take place around November.
SJVN Green Energy Limited, with around 3.6 GW assets in the pipeline, is expected to incur significant capital expenditure for renewable capacity addition, with more than Rs 15,000 crore earmarked for this purpose in FY25.
NHPC Ltd
NHPC Renewable Energy Limited (NREL), a wholly-owned subsidiary of NHPC Limited, is preparing to independently list its shares on Indian stock exchanges within the next three years, according to company management.
NHPC Plans to establish solar projects under NREL and subsequently transfer them to the subsidiary. NHPC anticipates commissioning 1,000 MW of solar projects under NREL by FY26-27.
NHPC has set a target to increase its total installed capacity, planning to double it from 7,000 MW to 14,000 MW by FY2027, primarily leveraging NREL.
Recently,NHPC has entered into a memorandum of understanding (MoU) with the Rajasthan government for the development of a substantial 10,000 MW renewable energy project in the state in the forthcoming years.
ONGC Green Limited,
ONGC Green Limited, a subsidiary of Oil and Natural Gas Corporation (ONGC), is in the process of preparing for an IPO. ONGC Green Limited was established as a wholly-owned subsidiary of ONGC, primarily company is focused on development of renewable energy, bio-fuels, green hydrogen, and carbon capture.
ONGC Green Limited intends to participate in various sectors within renewable energy, including solar, wind, hybrid, hydel, tidal, and geothermal energy, as well as in biofuels, biogas, green hydrogen, and associated derivatives such as green ammonia and green methanol.
In March, the company board approved a Rs 990 million equity investment in its newly established wholly-owned subsidiary, ONGC Green. Additionally, its board has granted in-principle approval for an additional investment of Rs 11 billion in ONGC Green.
Written by Omkar Chitnis
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