Solar stock jumps 4% after signing MoU with Bihar Govt. for renewable energy project – EQ
In Short : NTPC Green Energy Ltd. signed an MoU with Bihar’s government to develop renewable energy projects, including solar installations and green hydrogen initiatives. The announcement at the Bihar Global Investors’ Summit 2024 boosted NTPC Green’s stock by 4%. The partnership aligns with India’s renewable energy goals, marking a significant step toward sustainable energy infrastructure in the state.
In Detail : In a significant move towards sustainable development, a leading renewable energy corporation has partnered with the Bihar government through a Memorandum of Understanding (MoU) to develop renewable energy projects across the state. This strategic collaboration aims to harness Bihar’s renewable energy potential and marks a crucial step in the state’s green energy transition.
Share Price Movement
The share price of NTPC Green Energy Limited went up by 4.1 percent to Rs. 137.09 per share on Monday, an increase from its previous close of Rs. 131.67 per share. The market capitalisation now stands at approximately Rs. 1,12,634 crore as of December 23, 2024.
Contract Details
NTPC Green Energy Limited (NGEL) signed an MoU with Bihar’s Department of Industries at the Bihar Business Connect 2024 Summit. The agreement focuses on renewable energy projects like solar installations, battery storage, and green hydrogen. Bihar will assist with approvals and permissions, fostering sustainable investments in the state. Key officials and delegates attended the event.
Financial Highlights
According to its recent filing, in the half year ending September 2024, NTPC Green Energy’s consolidated revenue from operations has increased by 7.3 percent YOY from Rs. 1,008 crore in H2 FY24 to Rs. 1,082 crore in H2 FY25.
The company’s consolidated net profit has decreased by 15.8 percent, from Rs. 208 crore in H2 FY24 to Rs. 175 crore in H2 FY25.
Market Outlook
India’s renewable energy sector is poised for robust growth, driven by ambitious targets and increased investments. The government aims to achieve 500 GW of non-fossil-based electricity generation by 2030, with 13.5 GW of new renewable capacity added in 2023.
Electricity demand is projected to grow by 8% in 2024 due to economic expansion and rising adoption of electric vehicles and heat pumps. Investments include Rs. 8,500 crore for solar infrastructure and Rs. 17,490 crore for the Green Hydrogen Mission, boosting capacity to 170 GW by March 2025.
Shareholding Pattern
As of the November 2024 shareholding pattern, NTPC Green Energy Limited is primarily held by the promoters at 89.01 percent, foreign institutional investors hold 2.24 percent, and the public with 3.54 percent.
About Company
NTPC Green Energy Limited (NGEL), a wholly-owned subsidiary of NTPC Limited, is driving India’s ambitions. Established in April 2022, NGEL focuses on solar and wind energy, with an operational capacity of 3,320 MW as of September 2024. With its projects spanning six states, the company plays a pivotal role in reducing carbon emissions and boosting India’s clean energy footprint.
NTPC Green Energy aims to expand its capacity to 60 GW by 2032. It generates revenue through long-term power purchase agreements with government agencies. Backed by NTPC Limited’s expertise, NGEL is strategically positioned to develop large-scale renewable projects, explore green hydrogen, and become a key player in India’s sustainable energy transformation.
