The shares of the green energy company gained up to 4 percent after the company’s subsidiary secured 1000 MW in UPPCL’s Solar PV Power Project Auction.
With a market capitalization of Rs 1.08 lakh crore, the shares of NTPC Green Energy Ltd were trading at Rs 128.35 per share, increasing around 0.19 percent as compared to the previous closing price of Rs 128.35 apiece.
Reason for Rise
The shares of the company have seen positive movement after NTPC Renewable Energy Limited (NTPC REL), a wholly owned subsidiary of NTPC Green Energy Limited (NGEL), won the e-reverse auction held by Uttar Pradesh Power Corporation Limited (UPPCL). The tender is for the “Selection of Solar Power Developers for Establishing 2000 MW ISTS-connected Solar PV Power Projects in India under Tariff-Based Competitive Bidding.”
Financial performance
Examing the company’s financial performance, revenue jumped by 7 percent from Rs 1,008 crore in Q2FY24 to Rs 1,082 crore in Q2FY25. During the same duration, net profit decreased by 16 percent from Rs 208 crore to Rs 175 crore.
Portfolio
The company operates across multiple locations in over six states, reducing risks linked to location-specific generation variability. It focuses on developing utility-scale renewable energy projects and supplies power via long-term Power Purchase Agreements (PPAs) with government agencies and public utilities.
As of September 30, 2024, its portfolio includes 16,896 MW, comprising 3,320 MW of operational projects and 13,576 MW of contracted projects. With 9,175 MW under pipeline development, the total capacity reaches 26,071 MW. Solar and wind CUFs stand at 24.61% and 28.27%, respectively.
Supported by NTPC Limited, which targets 45-50% non-fossil capacity by 2032, the company benefits from a strong renewable energy focus. Over 95% of its revenue stems from renewable energy sales, reflecting its robust commitment to sustainable power generation.
Operational Capacity
NGEL aims to expand its operational capacity from 3.3 GW in September 2024 to approximately 6 GW by FY25, with further increases projected to 11 GW by FY26 and 19 GW by FY272. This growth is supported by a robust pipeline of projects totaling around 25-26 GW, with substantial portions already under construction or in the tendering phase.
Industry Outlook
The renewable energy sector in India is experiencing rapid growth due to increasing demand for clean energy. NGEL’s strategic expansion into various segments like green hydrogen and battery storage enhances its competitive edge against peers such as Adani Green Energy.
New Development
As of June 30, 2024, the company serviced 15 off-takers through its 37 solar and 9 wind projects. As of the same date, NTPC Green Energy was engaged in the construction of 31 renewable energy projects located in seven states, accounting for 11,771 MW of contracted and awarded capacities.
Company Profile
NTPC Green Energy operates in the renewable energy domain and is a wholly-owned subsidiary of NTPC Limited. The company’s renewable energy assets include solar and wind power projects. These projects range from utility-scale renewable energy developments to ventures for public sector undertakings (PSUs) and Indian corporate entities.
Written by:- Abhishek Singh
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