Tata Power Set to Surpass 18 GW Generating Capacity in Next 24 Months

Tata Power is gearing up to surpass a total power generating capacity of 18,000 MW within the next 24 months, with a significant boost expected from the renewables sector. Presently, the company boasts a capacity of 14,381 MW, with thermal energy accounting for 8,860 MW and solar contributing 3,191 MW. An additional 3,760 MW of renewable capacity is currently under construction.

Speaking to the media at the Bhivpuri location in Maharashtra, where Tata Power is initiating a pump storage hydro project, MD and CEO Praveer Sinha highlighted recent successes in the renewables segment. The company secured bids last week, bringing it closer to achieving its target of over 20 GW renewable capacity by 2030. One notable achievement is the letter of award received for a 200 MW Firm and Dispatchable Renewable Energy project with SJVN.

Group captive projects constitute a significant portion of Tata Power's renewable energy pipeline. The company envisions a capital expenditure (capex) of ₹60,000 crore until FY27, with approximately 45% earmarked for renewables. Sinha emphasized that the majority of capacity additions will be in the green energy sector.

Tata Power Solar is anticipated to report revenues of ₹17,000 crore in FY27, with plans to elevate it to ₹20,000 crore by FY30. Looking at the company as a whole, Sinha expressed expectations of crossing ₹60,000 crore in revenue soon. In the first half of FY24, Tata Power reported revenue of ₹30,446 crore.

In addition to renewables, Tata Power is strategically focusing on pump storage hydropower projects. Two projects were announced in August, located at Bhivpuri and Shirawta, with a combined capacity of 2.8 GW and a total investment of ₹13,000 crore.

Pumped storage hydropower operates on the principle of two reservoirs at different elevations, generating power as water moves between them. Functioning like a battery, it can store and release power as needed. In India, the current installed capacity of pumped storage hydro plants is just under 5 GW, despite a potential capacity of 97 GW.

HBL