State-run power giant, NTPC, is planning to transfer its entire renewable energy portfolio under a new company, NTPC Green Energy, followed by the monetization of the RE assets by the end of January 2023.
On the status of renewables monetization, the management said that NTPC proposes to offload anything between 10 per cent to 20 per cent, and the process is on. Asked whether the company aims to monetize the assets by the end of third quarter, the company's management in their Q2 FY23 earnings conference call said, "Our plan is there, it is scheduled to be by December, some plus or minus some days maybe, December or January it will come." The idea is to transfer
existing RE assets and the entire existing stake in NTPC Renewable Energy Ltd (NREL) to a separate company, NTPC Green Energy Ltd (NGEL), and then dilute 10 per cent to 20 per cent stake in NGEL. NTPC’s entire green portfolio on a long-term basis will now be consolidated under NTPC Green, which will have a 60 GW portfolio by 2032, according to the company. It added that instead of monetization of specific assets, it is a stake sale in the green energy company. About 2,861 MW of renewable capacity has been identified for monetization, existing assets, which has a book value of over Rs 10,000 crore, the mangament said.
The company’s management added that NGEL will ultimately become a holding company, the green vehicle under NTPC. “For example, the NTPC REL, which is currently a vehicle which we are using for building all these projects, will also come under NGEL, which will be housing some projects on its balance sheet and some through subsidiaries and joint ventures,” said the company. NTPC Group has already commissioned 2,524 MW of RE projects under EPC mode till the end of second quarter. At present, 5,348 MW of RE projects including ongoing projects of NTPC REL are under construction.
“Further Bids for 650 MW have been won which will be awarded soon. NTPC is on its way for development a 4.75-GW solar park in Gujarat. Plans for development of another 21 GW UMREPP are in various stages,” it added. Going forward, NTPC proposes to form a JV company between NGEL and Indian Oil to supply rount-the-clock renewable energy to the latter.
