NTPC Green Energy Limited Company Research Report
NTPC Green Energy Limited incorporated in April 2022, is a wholly owned subsidiary of NTPC Limited. Their renewable energy portfolio consists of both solar & wind power assets with presence across multiple locations in more than six states in India. As of 30th September 2024, the portfolio consisted of 16,896 MW (megawatt) including 3,320 MW of operating projects and 13,576 MW of contracted & awarded projects. The projects generate renewable power and feed that power into the grid, supplying a utility or offtaker with energy. For the operational projects, they enter into long-term Power Purchase Agreements or Letters of Award with an off taker that is either a central government agency like the Solar Energy Corporation of India (SECI) or a state government agency or public utility with an average term of 25 years. As of 30th September 2024, they had 17 off-takers across 41 solar projects and 11 wind projects.
• Additionally, they have capacity under pipeline of 9,175 MW out of which 6,925 MW was solar project and 2,250 MW was wind project. Together the portfolio and capacity under pipeline consisted of 26,071 MW. • They have signed joint venture agreements to produce renewable power with Rajasthan Rajya Vidyut Utpadan Nigam Limited (RRVUNL), Mahatma Phule Renewable Energy & Infrastructure Technology Limited (MAHAPRET), Damodar Valley Corporation (DVC) and 2 other PSUs (public sector undertakings) and have signed MOUs (memorandum of understanding) or term sheets with other private corporates. They also had a joint venture with Indian Oil NTPC Green Energy Private Limited (50% owned and 50% owned by Indian Oil Corporation Limited). • They also use the turnkey EPC (Engineering, Procurement, and Construction) contract model based on specific project conditions. In wind projects, the company generally use the turnkey EPC model, entering into contracts with OEMs for manufacturing, installing, commissioning wind turbines and the balance of plant. • The company had two subsidiaries: NTPC Renewable Energy Limited (100% owned) and Green Valley Renewable Energy Limited.
Company Outlook
The total installed generation capacity as of March 2024 was ~442 GW, of which ~98 GW of capacity was added over FY18-FY24. The overall installed generation capacity has grown at a CAGR of 4.3% over the same period. About 11 GW of capacity has been added during FY25 as of September 2024. The installed capacity has now reached 453 GW as of September 2024. • Coal and lignite-based installed power generation capacity has maintained its dominant position over the years and accounts for ~48% as of September 2024. • However, renewable energy (RE) installations (including large hydroelectric projects), have reached ~201 GW capacity as of September 2024, compared with 114 GW as of March 2018, constituting about 45% of total installed generation capacity. This growth has been led by solar power, which rapidly rose to ~91 GW from 22 GW over the same period. • India’s electricity requirement has risen at a CAGR of ~8.4% between FY21 and FY24, while power availability rose at ~8.5% CAGR on the back of strong capacity additions, both in the generation and transmission segments. • Peak electricity demand in India has grown from 164 GW in FY18 to 243 GW in FY24 clocking an average growth rate of 6.8% in the past six years. In FY25 (as of Total installed capacity – 453 GW Breakup of installed capacity as of September 2024 6% 2% 10% 34% Coal Renewable 48% Large Hydro Gas Nuclear Diesel Source: CRISIL report September 2024) the peak demand further increased to 250 GW in May 2024
In the renewable energy basket (including large hydro) as of September 2024, solar energy accounted for a share of 45%. Growth in the solar power sector over the last five years has been robust. As much as ~69 GW capacity was added in the segment over FY18FY25 (as of September 2024), registering a CAGR of ~24.7%, although on a low base.
