ntpc: NTPC taps CPPIB, TAQA to sell green arm stake

Global utilities and energy companies, pension and infrastructure-focussed funds are among those that have been approached by as it starts fundraising for its clean energy platform. NTPC’s plans—to first carve out its renewable energy assets into a special purpose vehicle and sell a stake subsequently to raise funds—will form part of the government’s National Monetisation Pipeline (NMP).

Feelers have been sent and preliminary discussions have been held with Abu Dhabi-listed TAQA, Malaysia’s stateowned Petronas, Canadian pension fund CPP Investment Board (CPPIB), Brookfield, KKR & Co. and Copenhagen Infrastructure Partners among others to gauge their interest, said people aware of the development.

ET was the first to report July 11 that NTPC is looking to raise `5,000 crore by selling a maximum 49% stake in its green energy subsidiary and had appointed

Capital Markets as advisor. Non-disclosure agreements are getting signed with prospective suitors after NTPC issued an advertisement seeking expressions of interest (EoIs).

The exact quantum of the stake sale and the amount to be raised is yet to be finalised. NTPC told the stock exchanges last month that it plans to hive off 15 of its renewable energy projects into NTPC Green Energy Ltd, a newly formed entity. The assets being separated have a book value of `10,000 crore. Additionally, its 100% stake in NTPC Renewable Energy Ltd is also being transferred to NTPC Green Energy, which will now be the main vehicle for its green energy ambitions.

“Use of renewable energy for decarbonisation of power and industry, as well as NTPC’s entry into all areas of non-fossil including civil nuke power, should aid in its transition,” said CLSA analyst Bharat Patel. NTPC, TAQA, Copenhagen Infrastructure Partners and Petronas didn’t respond to queries. Brookfield, KKR and CPPIB declined to comment. TRANSFORMATION STORY NTPC has 2.3 GW renewable energy capacity under operation and 3.4 GW being built. It has a target of 15 GW renewable energy capacity by FY26.