State-run NHPC Ltd plans to take its clean energy subsidiary NHPC Renewable Energy Ltd (NREL) public or sell its stake to strategic investors through private placements in two-three years, Rajendra Prasad Goyal, director, finance, NHPC, said in an interview.
The hydropower major is looking to add solar capacity, and once the projects in the pipeline are commissioned, they will be moved to NREL.
Currently, NHPC’s green energy projects, primarily comprising solar power, are under the parent company, though the green energy subsidiary was incorporated in February 2022 for developing its renewable, small hydro and green hydrogen portfolio.“Our plan is to first develop projects under NHPC, and then we will demerge these projects and shift them to NHPC Renewable and then list the company, or bring in strategic investors to create more value. It will take two-three years. We will first add capacity and shift the projects,” said Goyal.
The three solar projects totalling 1,000 megawatt (MW), under the Central Public Sector Undertaking scheme, will be commissioned by FY25.
Under the scheme for setting up of grid-connected solar photovoltaic (PV) power projects by government producers, the Centre provides viability gap funding support. Last year, NHPC signed contracts for three projects with cumulative capacity of 1,000 MW with engineering, procurement and construction (EPC) players under the scheme, including the 600 MW unit in Gujarat to Adani Infra (India), 300 MW in Rajasthan to Tata Power and 100 MW in Andhra Pradesh to the SSEL-ASR joint venture.
“We contracted the 1,000 MW to thhree contractors. Construction is underway in the Bikaner project for 300 MW. In other two projects, construction is yet to start. This 1 GW will be commissioned by FY25,” Goyal said.
NHPC has another solar project of 65 MW in Bundelkhand, Uttar Pradesh, of which 26 MW capacity has been completed. Goyal said NHPC is in the process of selecting an EPC contractor for a 200 MW project in Gujarat. It will also start work on floating solar projects. NHDC, its joint venture with the Madhya Pradesh government, is developing a floating solar project.
NHPC has also taken up green hydrogen projects on a pilot basis, Goyal said. “We are doing pilot projects for green hydrogen in Leh, Kargil and Chamba. We would look at the outcome and the commercial viability of these projects.”
The company is looking to add value to its renewable energy subsidiary and is planning to raise funds through private placements or an IPO, with green energy getting major policy focus, following the Centre‘s ambitious target of having an installed renewable energy capacity of 500 GW by 2030.
Goyal said the company is open to acquiring more stressed hydropower projects through the insolvency route. “We are already in talks for two stalled project in Arunachal Pradesh, Upper Subansiri (2,000 MW) and Middle Subansiri (1,500 MW),” he added.
The current developer of Upper Subansiri is KSK and the Middle Subansiri project is with Jindal Power.
Goyal said the company has also submitted an expression of interest for a stalled project of 65 MW capacity in Sikkim that was originally developed by Gati Infra.
The NHPC director also said that with the focus on hydropower projects in the country, the company is also open to take over stalled hydro projects which are going through insolvency.
Another state-run power major, NTPC, is also planning to list its subsidiary NTPC Green Energy Ltd on the stock exchanges after shelving its plan to bring in a strategic investor last fiscal.