Renewable Energy Sector | NTPC Green Energy Limited

NTPC Green Energy announced on September 26 that 81.34 MW of its Kalasar Solar Energy Project in Rajasthan had achieved commercial operation. Following the commissioning, the company's group commercial capacity increased to approximately 10,977 MW and total installed capacity to approximately 11,059 MW. This is an excellent example of how investors should distinguish between announced capacity, installed capacity and commercially operational capacity. Renewable-energy companies are capital-intensive, so investors should additionally study project execution, power-purchase agreements, financing costs, debt, capacity utilisation and cash flows. The learning point is simple: capacity growth becomes financially meaningful only when projects are commissioned and generate sustainable cash flows.