Tata Power, the leading power generation, transmission, and distribution company under the Tata Group umbrella, is ramping up its efforts to supply green energy solutions to both group companies and multinational corporations (MNCs). With a strategic shift towards investing solely in renewable energy (RE) projects, the company is actively engaged in discussions with various commercial and industrial (C&I) customers to provide tailored green energy solutions.
In a conversation with Business Standard, Praveer Sinha, MD and CEO of Tata Power, highlighted the company’s commitment to delivering integrated green energy solutions to its customers. “We are in talks with a multitude of companies, including large multinational corporations, who are eager to transition to renewable energy sources. This includes ongoing discussions with companies within the Tata Group, as well as new ventures,” Sinha stated.
Tata Power is exploring the ‘group captive’ route within the Tata Group, allowing companies to avoid cross-subsidy surcharges. Even for non-Tata companies, this mode is being considered to provide cost-effective solutions.
The recent amendment by the Union Ministry of Power in ‘group captive’ regulations has provided further impetus. The amendment mandates that captive power users in a group captive structure must hold a minimum of 26 per cent stake in the captive generating plant. This regulatory change has facilitated the setup of group captive plants through subsidiaries, enabling companies to bypass charges imposed by state-owned power distribution companies (discoms) on captive users.
Sinha emphasized Tata Power’s expertise across the energy supply chain, including transmission, distribution, solar, battery, and pumped hydro technologies. “We offer not just green energy but comprehensive energy planning and load management solutions to C&I customers. Our unique selling proposition lies in being an energy management company rather than just an energy solutions provider,” Sinha remarked.
Furthermore, Tata Power aims to incentivize green power consumption by offering carbon credits to companies that require them, adding another layer of sustainability to their offerings.
Recent trends show a surge among C&I electricity consumers in tying up green energy through open access and/or group captive arrangements following the rule amendment by the Centre. Major conglomerates in India have devised strategies to source green power outside the conventional grid, reflecting a broader industry shift towards sustainability and renewable energy adoption.
In summary, Tata Power’s proactive approach towards expanding its green energy offerings underscores its commitment to sustainable energy solutions. By leveraging its expertise and exploring innovative models like group captive arrangements, the company aims to cater to the evolving needs of both its internal and external customers, driving forward the adoption of renewable energy in India’s corporate landscape.
