Tata Power to Invest ₹750 billion in Renewables in the Next Five Years

Listen to this article

Tata Power has planned to spend over ₹750 billion (~$9.46 billion) in the next five years on renewables.

Tata Power has a consolidated capital expenditure of ₹140 billion (~$1.76 billion) with ₹100 billion (~$1.26 billion) in renewables. The company is looking to scale its generation capacity to over 30 GW by the financial year 2027 from the current 13.5 GW. It aims to increase its clean energy portfolio from 34% to 80% by 2030.

The company also aims to become carbon net-zero by 2045, water-neutral by 2030, and zero waste-to-landfills before 2030.

Tata Power Chairman Natarajan Chandrasekaran, addressing the company’s annual general meeting, said the company had added 707 MW of renewable capacity during the year. The new capacity addition has increased the company’s clean and green portfolio to 34% of total capacity. It aims to raise the share of its green portfolio to 60% in the next five years.

The company holds a strong engineering, procurement, and construction (EPC) order book of ₹130 billion (~$1.64). It is also setting up a 4 GW solar cell and module manufacturing capacity in Tamil Nadu with an investment of ₹30 billion (~$378.51 million).

Consolidated revenues in FY 2022 increased by 28% to ₹425.76 billion (~$5.37 billion) compared to ₹332.39 billion (~$4.19 billion) in the previous year. The increase in revenue growth was mainly due to the full-year operation of Odisha distribution companies.

Last January, Tata Power announced taking over Western Electricity Supply Company of Odisha (WESCO) and Southern Electricity Supply Company of Orissa (SOUTHCO). Since then, WESCO and SOUTHCO have been operating under Tata Power Western Odisha Distribution Limited and Tata Power Southern Odisha Distribution Limited, respectively.

The execution of major solar EPC projects last year is another reason for the rise in revenue. Tata Power Solar was one of the top utility-scale solar EPC service providers in 2021, according to Mercom’s  India Solar Market Leaderboard 2022. Tata Power Solar accounted for 9% of the market share

SJVN awarded the EPC contract for a 1 GW solar project in Bikaner, Rajasthan, to Tata Power Solar Systems in May. The project will be developed at an estimated cost of ₹54.91 billion (~$72.21 million), making it India’s largest solar EPC contract.

Chandrasekaran said Tata Power is equally focused on growing consumer-centric and new-age energy solutions such as rooftop solar, EV chargers, solar pumps, smart metering, and energy management solutions. To scale up these green businesses and solutions, Tata Power created a renewable platform that received an investment of ₹40 billion (~$525 million) from Blackrock Real Assets and Mubadala Investment company.