India’s largest power generator NTPC plans to list its renewables unit and proceeds from the public issue will be used to fund Rs 2.5-lakh crore clean energy expansion.
The state-owned energy firm intends to list NTPC Renewable Energy in the next fiscal year, reported Bloomberg.
NTPC plans to double generation capacity to 130 gigawatts by 2032 and cut the share of fossil fuels in that energy mix to about half from 92% currently.
With Indian government pushing for reducing carbon emissions, companies using fossil fuel are planning to expand in the renewable energy segment.
The move will also help India contribute to the aggressive climate change targets on the global stage.
Reliance Industries chairman Mukesh Ambani in June said the conglomerate will invest about $10 billion over three years on sectors including solar, hydrogen and batteries.
Furthering plans of green energy expansion, NTPC is looking to build large renewable energy parks and has secured land for a 5 gigawatt facility in Gujarat, the Bloomberg report said.
The firm has also inked a pact with state-run oil explorer Oil and Natural Gas Corp. to form offshore wind power plants.
In addition to the renewables unit IPO, the company is intending to issue bonds and take loans from domestic and overseas banks to fund its clean energy plans. The energy firm will also consider selling some assets to raise money.
Recently, the company almost doubled its clean energy target which would enable develop 60 gigawatts of capacity by 2032.
Among other efforts to go green, the firm has set a target to cut the share of fossil fuels in its generation fleet to 50% compares to an earlier goal of 70%.
The government’s policy support and falling costs of renewables are also helping the Indian fuel producers in their shift toward green energy expansion. According to BloombergNEF, it’s now cheaper to build new utility-scale solar capacity in India than to run most existing coal and gas power stations.
New coal-fired plants have become more expensive amid requirements to add equipment to curb the country’s air pollution.
