In an exclusive interview with NDTV Profit, NTPC Green Energy's Chairman, Gurdeep Singh, and Director of Finance, Jaikumar Srinivasan, discussed the company's growth plans and listing of the company. Mr Singh said that the IPO proceeds will be used for debt repayment and capital expenditures as NTPC aims to achieve 60 GW capacity by 2032, with 80% from solar and the rest from wind. The company plans significant expansions, adding 3 GW, 5 GW, and 8 GW in the next three years. They also highlighted future investments in battery energy storage, green hydrogen, and pumped storage systems, alongsid...
Questions asked in this interview
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0:09How will these debt repayments be carried out?
1:13What's the kind of mix in terms of solar, hybrid, and other types of renewable energy projects, and is there a targeted mix that the company aims to achieve?
2:18From my understanding, on average, how much revenue does the company earn per megawatt in terms of solar energy?
2:30How much revenue does the company earn or generate per megawatt in terms of solar energy?
2:50What are the targets, and how will the yearly capacity additions take place?
3:48What kind of capex does the company expect in FY25 and for the next 3 to 5 years?
4:35In terms of capex necessary to put up these capacities, what will the company incur in FY25 and going forward in the near term in terms of investment?
5:20What's the outlook here, and could you give us updates on what the company is working on in these two new energy spaces?
7:05Could you give us more insight on what the MOU is about?
8:17What kind of new orders or order inflow does the company expect, and what's your outlook on the tenders that have been floating around?
9:13Lastly, I'd like to end with — what are your expectations in terms of financial performance for FY25 as a whole?
We are now in conversation with the management of a newly listed company, NTPC Green. The IPO stood at a total issue size of 10,000 crores. To speak about the road ahead, we're joined by the Chairman and Managing Director of NTPC and NTPC Green Energy, Mr. Gurdeep Singh, as well as the Director Finance, Mr. Jumar Shasan. Welcome to the show and congratulations on the listing. Let me start off by asking about how 75% of the proceeds will be used for debt repayments. How will these debt repayments be carried out?
Good morning. Yes, we have indicated about debt repayment initially. Broadly, this 10,000 crores would be utilized for capital expenditure only, because we have a huge capacity addition planned. But on a more immediate basis, when we mop up this money, we'll be retiring some of the debts on the balance sheet, and subsequently when the capital expenditure happens, we'll have to again go for fresh loans.
Got it. Let's talk about the capacity under construction and in pipeline — 14 GW of contracted capacity, 9.2 under pipeline. What's the kind of mix in terms of solar, hybrid, and other types of renewable energy projects, and is there a targeted mix that the company aims to achieve?
The capacity, as was indicated, right now we have an operating capacity of 3.2 GW, and we have another 13.58 GW under construction and awarded, and we have a further portfolio in the pipeline of 9.18 GW which we are working on. So there is a visible pipeline of around 26.08 GW. This is what we are working on. Predominantly, this would be comprising of solar capacity. You can roughly take a ratio of 80 to 20 — 80% will be coming through solar, 20% through wind, and there will be some element of storage component in that.
Got it. You have all of this capacity lined up. How is the future capacity expansion coming into place? What are the targets, and how will the yearly capacity additions take place?
See, we have set out a target of 60 GW as a broad plan up to financial year 32. But on a more immediate basis, as I was explaining, we have a capacity under construction of close to 13.5 GW, a further 9.18 GW which is under negotiation — so a total of 26 GW is there. As far as commissioning is concerned, this year we'll be commissioning 3 GW, next year we target around 5 GW, and the year after that it would be 8 GW. So by the end of financial year 2027, we hope to have a capacity of 19 GW. Going further, we'll be ramping it up to 60 GW.
Singh, G. (2024, November 27). NTPC Green Energy's Management Shares 5-Year Growth Plan and Green Hydrogen Strategy [Interview transcript]. NDTV Profit. CEOInterviews.AI. https://ceointerviews.ai/interview/1046367/
MLA
Gurdeep Singh. "NTPC Green Energy's Management Shares 5-Year Growth Plan and Green Hydrogen Strategy." NDTV Profit, 27 Nov. 2024. Transcript, CEOInterviews.AI, https://ceointerviews.ai/interview/1046367/.
BibTeX
@misc{singh2024_1046367,
author = {Gurdeep Singh},
title = {NTPC Green Energy's Management Shares 5-Year Growth Plan and Green Hydrogen Strategy},
howpublished = {Interview transcript, NDTV Profit. CEOInterviews.AI},
year = {2024},
month = {nov},
url = {https://ceointerviews.ai/interview/1046367/},
note = {Speaker-attributed transcript with timestamps}
}
