Tata Power, one of India’s largest integrated power companies, has unveiled a substantial investment plan aimed at bolstering its renewable energy capacity. The company has set an ambitious target of ₹20,000 crore for capital expenditure (capex) in the financial year 2024-25 (FY25), marking a significant increase from the ₹12,000 crore invested in FY24. This investment underscores Tata Power’s commitment to advancing India’s energy transition and achieving its net-zero emissions target by 2070.
Focus on Renewable Energy
Approximately 50% of the planned capex will be allocated to renewable energy projects. Tata Power aims to accelerate its green energy portfolio, which currently stands at over 10 GW, including 4.5 GW of operational renewable capacity and 5.5 GW of projects under implementation. The company is also focusing on the development of a 4.3 GW solar cell and module manufacturing facility in Tirunelveli, Tamil Nadu, which has commenced production.
Strategic Projects and Goals
Tata Power’s investment strategy includes several key projects and initiatives. The company is actively expanding its rooftop solar and electric vehicle (EV) charging infrastructure, with a particular emphasis on residential and commercial consumers. The ‘Ghar Ghar Solar’ initiative under the PM Surya Ghar Yojana aims to solarize homes across India, supported by financing solutions in partnership with Indian Bank.
Additionally, Tata Power is exploring opportunities in small modular nuclear reactors and expanding its transmission and distribution networks. The company has won significant projects under the Tariff-Based Competitive Bidding (TBCB) process, such as the Interstate Transmission System (ISTS) in Rajasthan and the Intrastate Transmission Scheme in Uttar Pradesh.
Financial Performance and Growth
Tata Power has demonstrated robust financial performance, with consolidated profit after tax (PAT) rising by 12% to ₹4,280 crore in FY24. Revenue increased by 10% to ₹61,542 crore, driven by higher plant load factors and the successful execution of various projects. The company’s EBITDA also saw a significant rise of 26%, reaching ₹12,701 crore.
The company’s strategic focus on green energy and its investment in renewable infrastructure are pivotal in its growth trajectory. Tata Power aims to achieve around 70% of its capacity from non-fossil-based fuels by 2030, positioning itself as a leader in India’s renewable energy sector.
Future Prospects and Industry Impact
Tata Power’s aggressive investment in renewable energy aligns with India’s broader goals of energy security and sustainability. The expansion of solar manufacturing capabilities and the development of EV charging infrastructure are expected to play crucial roles in reducing carbon emissions and promoting cleaner energy sources. By enhancing its renewable energy portfolio and exploring innovative technologies, Tata Power is set to contribute significantly to India’s green energy transition.
This substantial investment not only highlights Tata Power’s commitment to sustainable growth but also sets a benchmark for the industry, encouraging other players to accelerate their renewable energy initiatives and support India’s journey towards a greener future.
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