NHPC Ltd Aims for Significant Growth and Diversification in Renewable Energy Sector
Key Ideas
- NHPC Ltd plans to increase its installed capacity to 23 GW by 2032 and 50 GW by 2047, with the aim of enhancing its net profit to Rs 4,500 crore by the fiscal year 2025-26.
- The company is focusing on diversifying its business into renewable energy sectors like solar, wind, pump hydro storage projects, and green hydrogen, with plans to develop these projects and act as a Renewable Energy Implementing Agency.
- NHPC is investing in green hydrogen technology, with pilot projects underway in Leh, Kargil, and Chamba, and plans to scale up the capacity based on the outcomes of these projects.
- NHPC aims to raise funds for its projects through internal accruals, equity investments, loans from financial institutions, and is exploring options like raising a loan from Japanese banks, with a sound debt to equity ratio of 0.84.
NHPC Ltd, a state-run hydropower company, is on a growth trajectory with plans to significantly increase its total installed capacity over the coming years. The company's Chairman and Managing Director, Raj Kumar Chaudhary, revealed that NHPC aims to raise its installed capacity to 23 GW by 2032 and further expand to over 50 GW by 2047. NHPC is also optimistic about boosting its net profit to Rs 4,500 crore by the financial year 2025-26. The company currently operates 28 power stations with a total installed capacity of 7.2 GW, with 15 projects under construction to add a combined 10,604 MW capacity.
NHPC is diversifying its business into renewable energy sectors such as solar, wind, pump hydro storage projects, and green hydrogen. As a Renewable Energy Implementing Agency, NHPC is actively involved in developing renewable energy projects and has been designated with a bidding target of 10 GW annually by the MNRE. The company has also initiated projects in green hydrogen technology, including a 25 KW capacity Pilot Green Hydrogen Project in Leh, along with pilot green hydrogen-based e-mobility projects in Kargil and Chamba.
To fund its projects, NHPC plans to raise funds through internal accruals, equity investments, and loans from financial institutions. The company is exploring opportunities for financing, including securing a loan from a Japanese bank. NHPC is also looking to monetize its assets, such as the Dulhasti Power Station, to fund its equity portion of the projects.
Looking ahead, NHPC anticipates maintaining its profitability in the current financial year, aiming for a net profit in the range of Rs 3,500-3,600 crore. However, with the commissioning of new projects, the company projects a substantial increase in revenue and profitability for the fiscal year 2026, with hopes of surpassing Rs 4,500 crore in net profit. The company is also considering the listing of NHPC Renewable Energy Ltd once it establishes a substantial portfolio in renewable energy.