NTPC Green Energy Limited is a wholly-owned subsidiary of NTPC Limited, a ‘Maharatna’ central public sector enterprise. They are the largest renewable energy public sector enterprise (excluding hydro) in terms of operating capacity and power generation in Fiscal 2024. Their renewable energy portfolio encompasses both solar and wind power assets with presence across multiple locations in more than six states which helps mitigate the risk of location-specific generation variability.
They are strategically focused on developing a portfolio of utility-scale renewable energy projects, as well as projects for PSUs and Indian corporates. Its projects generate renewable power and feed that power into the grid, supplying a utility or off-taker with energy.
Company's operational capacity is 3,071 MW of solar projects and 100 MW of wind projects across six states as of August 31, 2024.
Strengths And Risks
+ Promoter: NTPC: Company is promoted by NTPC Limited, which has extensive experience in executing large- scale projects, longterm relationships with offtakers and suppliers and financial strength. NTPC Limited is a ‘Maharatna’ central public sector enterprise under the ownership and administrative control of
the MOP of the Government of India.
+ Large portfolio: Company has a large portfolio of utility-scale solar energy projects and wind energy projects, as well as projects for PSUs and Indian corporates. These projects generate power and feed that power into the grid, supplying a utility or offtaker with energy.
+ Experienced team: Company is the renewable energy arm and subsidiary of NTPC Limited, and along with the NTPC Group have a strong track record of developing, constructing and operating renewable power projects, driven by experienced in-house management and procurement teams.
+ Growth: Company's portfolio of operating solar and wind projects, focus on maintaining high capacity utilization, operational efficiency and low operating costs have yielded growth in revenues and EBITDA. The revenue from operations has grown at a CAGR of 46.82% from Fiscal 2022 to Fiscal 2024.
- Limited pool of users: Since the transmission and distribution of electricity are controlled by central and state government-utility companies, there is a concentrated pool of power purchasers for utility scale electricity generated by their solar and wind plants and projects.
- Long project gestation: There is a time gap between making significant upfront investments in solar, wind and other renewable energy projects and receiving revenues, which could have an adverse effect on business.
- Weather dependence: The generation of electricity from solar and wind sources depends heavily on suitable meteorological and
climate conditions. Unfavourable weather conditions could have a significant impact on business
prospects and future financial performance.
