It is possible to play the investment theme of NTPC Green through the NTPC stock for investors seeking the comfort of the latter’s stable cash flow
The power tariff under PPA is calculated based on a cost-plus model, while maintaining the RoE at the base level on regulated equity (equity component of capital expenditure for a power plant). So, NTPC’s regulated equity increases only when a new plant is commissioned. For instance, NTPC’s capacity increased by 3% year-on-year to 61 GW in FY26, which means regulated equity and, thereby, profit should increase by only 3%.
