In the next five years, Tata Power expects to invest Rs75,000 crore in renewable energy

8 Jul 2022 , 09:18 AM

In the next five years, Tata Power intends to invest more than Rs75,000 crore in renewable energy. During that same time, the company
expects to have 30 GW of power generation capacity, with more than half coming from clean energy sources.

Tata Power currently has a generation capacity of 13.5 GW, with 34% coming from renewable energy sources.

On July 7, the company’s Chairman Natarajan Chandrasekaran stated at the annual general meeting that it has “planned a capex of over Rs75,000 crore in renewables in the next 5 years.” He was answering a shareholder’s question regarding the company’s future prospects.

In his address, Chandrasekaran stated that Tata Power plans to raise its clean energy portfolio from its present level of 34% to 60% by 2027 and 80% by 2030 in order to scale its generation capacity to over 30 GW by FY’27 from its current 13.5 GW. Additionally, he disclosed to shareholders that the company had budgeted Rs10,000 crore for renewable energy as part of its FY23 consolidated expenditure of Rs14,000 crore.

In FY22, Tata Power increased its renewable energy capacity by 707 MW. According to Chandrasekaran, the company has a sizable EPC order book worth Rs13,000 crore and is also establishing a 4 GW solar cell and module manufacturing capacity in Tamil Nadu with an Rs3,000 crore investment. He claims that the business is equally focused on developing new energy solutions that are centred on the needs of the consumer, such as solar roofs, EV chargers, solar pumps, smart metering, and energy management systems.

The company has also formed a strategic alliance and built a renewable platform with funding of Rs4,000 crore from Blackrock Real Assets and Mubadala Investment Company in order to scale up these green businesses and solutions, he continued. In serving 12 million consumers, including 9 million in Odisha, the company is equally committed to delivering great performance in the transmission and
distribution industry, he said.

In addition, he stated that the company would further optimize the operations of the Odisha discom, stabilize the recent purchase in the transmission business, and provide exceptional customer service made possible by digitalization. He also mentioned how the business was moving toward setting an ESG (Environmental, Social, and Governance) standard in the electricity industry.

He said the corporation has three main objectives in this pursuit: reaching carbon net-zero by 2045, 100% water neutral by 2030, and zero trash to landfills before 2030.