NTPC Green, a unit of state-owned NTPC, has set a price range for its initial public offering that is expected to bring in some $1.2 billion.

According to a Reuters report citing a newspaper ad, the company set its price range at between 102 and 108 rupees, which is equal to a range between $1.21 and $1.28. The IPO is expected to be the third-largest since the start of the year, Reuters noted.

The initial public offering of NTPC Green is part of a transition drive on the part of the Indian government after it pledged to do its bit for the global energy transition and expand its low-emission power generation sector.

As a result of these efforts, earlier this year a top senior official said the country was set to add a record amount of new wind and solar generation capacity in the fiscal year that ends in March 2025. Some 30 GW of new solar capacity and 5 GW of new wind capacity were seen coming online in the period, Reuters reported in September, citing a top official from India’s Ministry of New and Renewable Energy.

Back in 2015, India pledged to deliver 175 GW in wind and solar capacity by 2022 but this target has proved elusive, with solar additions slowing down in recent years after they pushed India to the rank of third-largest solar generator in the world.

Now, India has a target of delivering 500 GW of wind and solar by 2030, which means it would need to expand its capacity by 30% more than the record high of the current fiscal year—every year until 2030.

This certainly opens up an opportunity for transition players such as NTPC Green, with some $386 billion in funding for transition projects pledged by banks for the period until 2030, according to renewable energy minister Prahlad Joshi.

By Charles Kennedy for Oilprice.com

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