Tata Power is India’s largest integrated power company with a significant international presence. The Company has an installed generation capacity of 12742 MW in India of which 30% comes from clean energy resources and a presence in all the segments of power sector, viz Fuel & Logistics, Generation (thermal, hydro, solar and wind), Transmission, Distribution and Trading. It has successful public-private partnerships in Generation, Transmission and Distribution in India namely “Tata Power Delhi Distribution Limited” with Delhi Government for distribution in North Delhi, ‘Powerlinks Transmission Ltd.’ with Power Grid Corporation of India Ltd. for evacuation of Power from Tala hydro plant in Bhutan to Delhi and ‘Maithon Power Ltd.’with Damodar Valley Corporation for a 1050 MW Mega Power Project at Jharkhand. It is one of the largest renewable energy players in India and has developed the country’s first 4000 MW Ultra Mega Power Project at Mundra (Gujarat) based on super-critical technology. Tata Power has signed a Distribution Franchisee Agreement (DFA) with Ajmer Vidyut Vitran Nigam Limited (AVVNL) and formed a Special Purpose Vehicle (SPV) “TP Ajmer Distribution Limited” (TPADL), to cater to the power requirements of customers in Ajmer for a period of 20 years.
Its international presence includes strategic investments in Indonesia through 30% stake in the leading coal company PT Kaltim Prima Coal (KPC) in Singapore through Trust Energy Resources to securitise coal supply and the shipping of coal for its thermal power generation operations and in Bhutan through a hydro project in partnership with The Royal Government of Bhutan.
Power Generation Capacity (MW):
| Power Generation | Capacity |
| Thermal | 8,860 |
| Waste Heat Recovery/BFG | 375 |
| Hydro | 871 |
| Wind | 932 |
| Solar | 1,705 |
Fuel Mix (MW%):
| Fuel Mix | Percentage |
| Thermal | 70 |
| Hydro | 7 |
| Wind | 7 |
| Solar | 13 |
| Waste heat recovery | 3 |
Businesses:
1)Renewables:
a)Solar Generation: Tata Power has strong portfolio of 1,705 MW of solar generation capacity. It has recently commissioned a 100MW solar plant at Anantapur Solar park, Andhra Pradesh. It has also commissioned 150 MW in Pavagada, Karnataka, 30 MW at Palaswadi in Maharashtra and 25 MW in Charanaka, Gujarat. The company has set up its first solar power Plant of 110 kw, way back in 1996 at Walwan in Lonavala. 60.48 kwp solar power plant has been installed on the roof top of company’s office in Mumbai. Tata power has recently acquired Welspun renewable Energy which owns 1141 MW of renewable energy asset comprising 995 MW of solar and 146 MW of wind assets across various states in India. Worldwide and in India, solar power generation is gaining more and more prominence with each passing day. Solar power is essential energy resource that has the potential to improve supply in India, predominantly in remote areas, while augmenting the overall security of India’s energy supply.
b) Wind:
Tata Power has installed capacity of 932 MW and plants spread across seven states of Maharashtra, Gujarat, Tamil Nadu, Karnataka, Rajasthan, Andhra Pradesh and Madhya Pradesh. Recently Tata Power subsidiary, Tata Power Renewable energy ltd has commissioned 21 MW Vagaria wind farm in Tamil Nadu, 100 MW in Nimbagallu, Andhra Pradesh, and 26MW in Gujarat.
Tata Power Renewable Energy Limited (TRPEL) is wholly owned subsidiary of the Tata Power company Ltd. TRPEL is Tata Power’s primary investment vehicle for the clean and renewable energy based power generation capacity. Tata power intent 30-40% of generation capacity from non fossil fuel based sources. TRPEL develops, constructs and operated wind and solar power assets. Partners of TRPEL: ABB, Gamesa, Inox Wind, Kenersys, ReGen, Powertech, Suzlon, Tata Power Solar, Wind World.
c) Solar Manufacturing:
Tata Power, through its solar arm, has been providing 29 years of manufacturing of cells and modules by focusing on cutting edge technology and world class innovation. With over 1.4 GW of modules shipped globally, company’s cells and modules are recognized for its quality and reliability across the world.
1.4 GW of modules shipped worldwide.
Module manufacturing capacity of 400 MW.
Cell Manufacturing capacity of 300 MW Mono and Multi Crystalline Wafers of 125MM and 156MM sizes.
Tata Power was the first Indian Solar manufacturer to achieve the milestone of 1GW modules worldwide, cementing their position as a leading player in the global PV module manufacturing industry.
d) EPC Large Projects:
Tata power through its solar arm, Tata power solar has installed over 17 utility scale solar energy projects across 13 states in India, exceeding 1.45 GW. Some of its key EPC projects are: 100 MW NTPC Anantapur project spread across 500 acres which produces 160 million units. It also offsets CO2 by around 1,10,000 tonnes annually. 10MW solar power plant for Jindal Aluminum Ltd. 17MW solar power plant in Mithapur.
e) Products:
1) Solar Roof Tops:
Tata Power is number one solar rooftop EPC company for seven years in a row. Company has 140+ sales & services channel partner across India. Pan India presence. 15,000+ residential system commissioned. Company has 30 years of experience with 345MW+ of installation. Land Mark Projects of Tata Power Solar for Homes in India: 10.8 MW rooftop solar power system at Anert, Kerala where people overwhelmingly gave an order of 7,700+ systems, to Tata Power solar, being the largest orders for a single vendor. 5.25Kw solar system at Suvidha Housing Society, Bengaluru. Around 32 solar systems are commissioned which will annually offset CO2 of 252 tonnes in 25 years.
Commercial and Industrial Rooftops:
Solar energy provides a good return on investment through the use of un-utilized rooftop space and requires minimal maintenance. All of this has a positive impact on savings and even greater impact on the environment. Investment in Tata power solar industrial rooftop solution ensures return on investment by reducing electricity bills. Tata Power solar customized rooftop solutions have helped multiple industrial, commercial and institutional customers implement sustainable solar power solutions, thereby reducing their carbon footprint while making sound fiscal sense for them. Company’s offerings:
Solution tailored to customers requirement – ranging from few kw to multiple MW’s. 25 years serviceability – Tata power is the only solar company having lived the life of the product. Lease financing, debt financing, pay as you go model.
Landmark Projects of Tata power solar commercial and industrial rooftops:
i)820.8 KWP solar rooftop installation at CCI stadium, Mumbai. It is the world’s largest solar rooftop installation on a cricket stadium, at cricket club of India, Mumbai. It offsets around 840 tonnes of carbon annually. It generates around 1.12 million units of electricity per year, which led to 25% of savings in the power consumption cost. At present, on average (apart from stadium flood lights, which runs on DG), the stadium consumes 4 lakhs Kwh/month. However, with the new solar installation, on an average basis the consumption from the grid would fall to approximately 3 lakhs Kwh/month.
ii) 1 million Kwh of solar power per year – GE:
Tata power solar has entered into power purchase agreement with GE to provide solar rooftop solutions for six manufacturing and services site in India. Tata power will install solar rooftop projects at manufacturing sites located at Durgapur in West Bengal, Pallavaram and Hosur in Tamil Nadu, Multi Model Manufacturing site at Pune and upcoming factory at Marhowra in Bihar and maintenance facility at Roza in Uttar Pradesh. It will curb around 13,000 kg of CO2 per day and average tariff reduction of around 30%.
iii) 120 Kwh vertical solar power farm – Dell.
iv) 2.67 MW solar plant – Carport Cochin International Airport.
It is India’s largest carport solarized plant. And it offsets 1868 tonnes of CO2 annually. It generated around 11,000 units of electricity daily.
The rising costs of conventional energy sources have led to surge in thoughts of using alternative energy sources. Tata power solar has already partnered with more than 100 institutions such as schools, universities, non-profit organizations in implementing solar energy systems to meet their power needs.
v) 16 MW rooftop solar power system at RSSB-EES, Beas. Here company has installed on 46,000+ modules on 1.621 million sq.ft of roof sheds.
vi) 146 kw rooftop solar system at HMR institute of technology and management. Here the solar rooftop system fulfills institute’s 100% energy requirement. It generates around 2,04,000 units of electricity annually and will offset around 3,679 tonnes of carbon over next 25years.
2) Solar water pumps/solar agricultural pumps:
Tata power is India’s leading manufacturer of solar pumps. Tata solar power pumps supports various applications including field irrigation or supplying potable water for people, while drawing water from underground multiple water sources as per requirement. With the cost of diesel and electricity rising constantly, solar powered pumps are the perfect alternative for rural regions as these have low maintenance cost and ensure along product life. People from rural areas have to work additionally hard for water, specially due to unpredictable nature of rain in country. Tata power solar powered water pumps are a low cost solution enabling residents to spend more time increasing their income by growing crops, rather than ferrying water from far off distances.
Submersible water pumps: submersible pumps range of Tata power solar supports varied applications like field irrigation or supplying potable water, while drawing water from underground water sources like bore-wells or sumps.
Surface water pumps: surface pumps range from Tata Power solar supports varied applications like field irrigation or supplying potable water, while drawing water from nearby water sources like lakes, ponds, canals or rivers.
3) Solar Microgrids:
In world around 800 million people lacks access to dependable electricity. Tata power has partnership with Rockefeller foundation for providing last mile electrification. The new venture TP renewable microgrid will address one of the most pervasive challenges by scaling up an innovative micro grid model to be implemented in collaboration with smart power India. It will provide clean power to nearly 5 million household directly impacting lives of 25 million people over next decade. This venture will also ensure lowering elective electricity costs and carbon emission by 1 million tonnes per year. This unique collaboration will amplify the government of India’s ongoing campaign to provide electricity to rural areas, unleashing the potential of renewable microgrids to serve households and businesses that suffer from poor reliability and coverage by traditional grid based power. TP renewable microgrid will be operated by Tata Power, which has approximately 11,000 MW of installed generation capacity and over 2.6 million customers under management across Delhi, Ajmer and Mumbai. The anticipated rollout of 10,000 grids will drastically expand the global microgrid footprint and will act as catalyst for governments and the private sector to collaborate in building clean, resilient and stable grids in other markets.
4) Solar RO system:
Tata power solar powered purifier solution provides the latest water cleansing technologies in remote and rural India. Around 25% of Indian population is not grid connected and an additional 30% with limited connectivity. A solar powered RO and UF plant is boon for rural India since it makes safe drinking water available without dependency on intermittent/no electricity connectivity.
5) Hydro :
Tata power has an installed hydro capacity of 693 MW, of which 65% is generated for the domestic market.
6) Thermal:
Tata power generates about 7,340 MW from its thermal power plants. Coastal Gujarat Power Limited, Tata powers wholly owned Subsidiary, has implemented 4000 MW UMPP near the port city of Mundra in Gujarat which meets nearly 3% of India’s power needs of the country. This UMPP is India’s first 800 MW unit thermal power plant using supercritical technology, supplying to 5 states: Gujarat, Rajasthan, Maharashtra, Haryana and Punjab.
7) Transmission and Distribution:
Tata power has a transmission and distribution network in Mumbai, Delhi and Ajmer. It has around 0.7 million customers in Mumbai, 1.76 million customer in Delhi and 1.38 lakh customer is Ajmer.
5) EV charging stations:
Tata Power has installed over 200 charging points across India. Tata power has deployed charging infrastructure solution in 17 cities including Mumbai, Delhi, Bangalore, Hyderabad, Pune, Chenai, Ahmedabad, Chandigarh, Lucknow, Kolkata, Vishakhapatnam. Tata power has partnered with Tata motors, MG motors and Jaguar Land Rover for developing EV charging Solutions. Tata power has MoUs with IOCL, HPCL, IGL, MGL, Govt. of Maharashtra for developing EV charging infrastructure. Tata power also plans to install EV charging points in Malls, residential societies and in industrial areas.
Recently Renascent Power ventures Pvt Ltd, 100% subsidiary of resurgent power ventures Pvt Ltd completed the acquisition of 75.01% equity ownership in Prayagraj power generation company ltd. This has augmented Tata Power generation capacity by 1,980MW. However, this is likely to be amongst the last investments in coal based power plants by Tata Power, as Tata Power turns its sights completely towards cleaner energy. When with new distribution solutions like microgrid, solar rooftop and solar water pumps will play a big role in Improving the energy across the country, in both urban and rural areas. All these initiatives are poised take Tata Power share of clean and green energy from 30% in 2020 to around 50% – 60% in 2025. Tata power installed 1.95 lakh SMART meters.
Tata Power strategic Business Objectives:
1)Set new benchmarks in operational excellence and financial returns for existing businesses: to operate thermal and hydro plants at full efficiency. Operate RE portfolio above design parameters to increase yield. AT&C loss reduction for TPDDL, TPADL and CESU.
2) Resolution Of CGPL (Mundra) under recovery: to optimize coal blending to minimize impact of rise in coal benchmark price, optimization of coal transportation and handling cost, advocacy for quick implementation of high power committee recommendations.
3) Deleveraging Balance sheet: reduce debt through divestment of non – crore assets and strengthen balance, adopt debt light models through innovative financial engineering and re-structuring.
4) Scale-up renewable, distribution, services and energy solutions businesses: increase share of clean energy/renewable to 50-60% of the generation portfolio by 2025, 1 crore+ customer base across business by 2025, More than 1 lakh EV charging points across India by 2025.
Tata Power Aims:
| Material Topics | Strategic Objectives | Key Actions |
| Increase in renewables portfolio | Scale-up Renewables, Distribution, Services and Energy Solutions businesses | Developing an efficient structure to grow the business into industry leadership position, Arranging capital for investments in renewable energy projects, Maintain market leadership in the rooftop solar business by targeting both urban and semi-urban areas for expansion, Focus on multi-fold growth in renewables EPC business, Develop the Microgrid Business Model |
| Future ready | Deleveraging Balance Sheet | Establish capital light structures to leverage on growth opportunities, Monetise non-core assets to deleverage and strengthen balance sheet, Continuously identify future opportunities, Strengthen our annual strategy review and turnaround plan, Adopt alternative business structure – debt light models through innovative financial structuring |
| Carbon emission management | Focus on Sustainability with an intent to attain carbon neutrality | Consistently building on our innovative initiatives to reduce GHG emissions and improve operational efficiency to reduce energy consumption, Reducing carbon intensity by increasing investments in renewable portfolio, Phase out plans for thermal projects and retire existing thermal assets without life extension, Compensatory afforestation, Aggressive growth in renewable energy-based capacity (Utility scale, Microgrids, Rooftop), Exit businesses which do not support sustainability targets |
| Operational Efficiency | Set new benchmark in operational excellence and financial return for existing businesses | Deploy advanced technologies to manage assets, Strengthening our approach to ensure short- and long-term electricity availability and reliability, Technical interventions taken to enhance the efficiency of the power plants and renewable projects, Increasing our initiatives to reduce transmission and distribution loss |
| Sustainable investing | Scale-up Renewables, Distribution, Services and Energy Solutions businesses | Investment decisions to increasingly encompass sustainability linked parameters, No greenfield and brownfield thermal project going forward |
India has immense Renewable Energy (RE) potential (ground mounted solar: 750GW, wind: 300 GW and rooftop solar: 210GW). Solar and wind energy resources could change the dynamics of the power sector. Currently, RE power is cost competitive to fossil fuel power plants, and a transition from fossil fuel to RE sources is clearly underway. This is further reinforced by India’s commitment at COP21 to reduce its GHG emission intensity per unit GDP by 33-35% below 2005 levels, by 2030. To meet its commitment, India has set an ambitious target of achieving an installed RE capacity of 175 GW by 2022. The target was further recalibrated in 2019 to 500 GW by 2030, with a set of favorable policies and framework in place which provided a fillip to the renewable industry in India.
TATA POWER DOMESTIC SOLAR PV PRESENCE (IN MW)
| States | MW |
| Karnataka | 569 |
| Tamil Nadu | 251 |
| Rajasthan | 215 |
| Andhra Pradesh | 205 |
| Maharashtra | 133 |
| Madhya Pradesh | 130 |
| Gujarat | 100 |
| Bihar | 41 |
| Punjab | 36 |
| Telangana | 15 |
| Jharkhand | 5 |
| Delhi | 2 |
| Uttar Pradesh | 1 |
| Haryana | 1 |
| Uttarakhand | 1 |
| TOTAL | 1,705 |
TATA POWER DOMESTIC WIND ENERGY PRESENCE (IN MW)
| States | MW |
| Maharashtra | 239 |
| Gujarat | 194 |
| Rajasthan | 185 |
| Tamil Nadu | 120 |
| Andhra Pradesh | 100 |
| Karnataka | 50 |
| Madhya Pradesh | 44 |
| TOTAL | 932 |
Till date, Tata Power have built a portfolio of over 25,000 solar power pumps. Tata Power expand its Solar rooftop manufacturing capacity to 421 MW. In solar rooftop sector Tata Power is present in across 94 cities. Company is planning to expand its presence in solar rooftop segment in 101 cities.
Growth Of Business:
| Scale-up renewables, distribution and service Businesses | Less Capital – Intensive Business Model | Favourable Risk Return Portfolio |
| Increase share of renewables to 50-60% by 2025 through planned investments in renewable space, Tap state Discom privatisation opportunities through competitive bidding, Invest in R&D to develop techenabled consumer-centric home automation solutions | Adopt asset/debt light models through financial engineering and restructuring. Adopt debtlight model for growth | Bids to be placed only in those renewable projects that meet the minimum IRR threshold, Deleveraging balance sheet with financial structuring securing alignment with statutory auditors and bankers |
A U.S utility was the first to commit to a 100% carbon free initiative by 2050, and 80% by 2030. Several European nations have formulated renewable energy targets which include increasing share of renewables portfolio in the power generation mix by 2030, while also planning to phase out coal by that time. Similar announcements have gathered pace worldwide. The share of renewables is expected to be 44% by 2040, from the current level of 25%. The resulting impact of this would be the decline in coal based power generation from 38% to 25%.
Indian Generation Mix (In GW):
| FY10 | FY20 | CAGR (%) | |
| Coal | 84 | 199 | 9 |
| Gas | 17 | 25 | 4 |
| Nuclear | 5 | 7 | 4 |
| Hydro | 37 | 46 | 2 |
| Renewables | 16 | 87 | 19 |
| Others | 1 | 7 | 19 |
Tata Power Business Portfolio, Opportunities and Outlook:
| Model | Returns | Project | Capacity (MW) | Overal Capacity (%) |
| Regulated Tariff | Regulated return on equity | Mumbai operations (Trombay and Hydro), Maithon, Jojobera (Unit 2 and 3) TPDDL-Rithala | 2,775 | 21.8 |
| PPA/Fixed Tariff(Renewables) | Feed In Tariff + Bid Driven | Wind and Solar Projects (Domestic) | 2,637 | 20.7 |
| PPA/Fixed Tariff (Bid/ Others) | Bilateral Agreement + Bid Driven | Jojobera (Unit 1 and 4), CGPL, Itezhi-Tezhi, Hydro projects, Georgia hydro, Kalinganagar-IEL-40 MW | 4,676 | 36.7 |
| Captive | Bilateral Captive Agreement | IEL (Unit 5, PH6, KPO), CKP (Indonesia) | 429 | 3.4 |
| Merchant | Market Driven | Haldia, Dagachhu | 246 | 1.9 |
| Under platform management | PPA Based | Prayagraj | 1,980 | 15.5 |
| Total | 12,742 | 100 |
Sector Study:
1)Power sector:
Growing population along with increasing electrification and per capita usage will provide further impetus. Power consumption in India is estimated to reach 1,1894.7 Twh in 2022. India will see a huge energy investment of around US$100 billion by 2024. By 2022, solar energy is estimated to contribute 114 GW, followed by 67 GW from wind power and 15GW from Biomass and hydro power. The target for renewable energy has been increased to 227GW by 2022. Total installed power stations in India stood at 373.43 GW as of December 2020. The union government Of India is preparing rent a roof policy for supporting its target of generating 40 GW of power through solar rooftop projects by 2022.
Electricity Production In India (in billion Unit)
| Year | Market Size (BU) |
| FY17 | 1,160.10 |
| FY18 | 1,201.54 |
| FY19 | 1,249.20 |
| FY20 | 1,252.61 |
Power Supply Position (GW):
| Year | Peak Demand | Peak Met | Deficit (%) |
| FY18 | 158.52 | 156.72 | 1.1 |
| FY19 | 169.31 | 168.74 | -0.3 |
| FY20P | 170.83 | 170.17 | -0.4 |
Installed Capacity for Different Sources Of Power – FY21 (GW)
| Sources Of Power | Capacity (GW) |
| Thermal | 231.32 |
| Renewable | 89.63 |
| Hydra | 45.69 |
| Nuclear | 6.78 |
Installed Electricity Generation Capacity (GW):
| Year | Installed Electricity Generation Capacity (GW) |
| FY16 | 280.33 |
| FY17 | 326.84 |
| FY18 | 344.00 |
| FY19 | 356.10 |
| FY20 | 370.11 |
| FY21* | 373.43 |
Per Capita Electricity Consumption (KWh):
| Year | Per Capita Electricity Consumption (KWh) |
| FY16 | 1,075.00 |
| FY17 | 1,122.00 |
| FY18 | 1,149.00 |
| FY19P | 1,181.00 |
On Renewable energy is fast emerging as a major source of power in India. The government of India has launched US$5 billion of transmission line tenders in phases and has set a target of 227GW by 2022. In FY20, total thermal installed capacity in India stood at 231.32 GW. Renewable, hydro and nuclear energy installed capacity totaled 89.22GW, 45.69GW and 6.78GW respectively. The government plans to double the share of installed electricity generation capacity of renewable energy to 40% by 2030. India has also raised the solar power generation capacity addition target by 5 times to 114 GW by 2022.
The global installed solar capacity could surge from 495 GW in 2019 to 3,142 GW by 2040, and in just 15 years it could surpass coal and gas to become largest source of installed capacity. Solar PV will grow from 592 Twh to 4,705 Twh from a 2% share of global electricity generation today to 11% in 2040.
Share of Sources of Energy in 2019 (%):
| Sources of Energy | Share (%) |
| Coal | 38 |
| Natural Gas | 23 |
| Oil | 3 |
| CCUS | 0 |
| Nuclear | 10 |
| Hydra | 16 |
| Solar PV | 2 |
| Wind | 5 |
| Other renewables | 3 |
Stated policies 2040 (%):
| Sources Of Energy | Share (%) |
| Coal | 25 |
| Natural gas | 22 |
| Oil | 1 |
| CCUS | 0 |
| Nuclear | 8 |
| Hydro | 15 |
| Solar PV | 11 |
| Wind | 13 |
| Other renewables | 5 |
Sustainable Development 2040 (%):
| Sources Of Energy | Share (%) |
| Coal | 4 |
| Natural gas | 12 |
| Oil | 0.4 |
| CCUS | 5 |
| Nuclear | 11 |
| Hydro | 18 |
| Solar PV | 19 |
| Wind | 21 |
| Other renewables | 9 |
The global power sector investments will total US$20 trillion over the period through 2040, 20% higher than annual spending from 2010-2019 – representing 50% of total energy supply investment worldwide. Annual power sector investment could average US$900 billion to 2040. About US$500 billion will be spent on power plants, including US$360 billion for renewables, and more than US$400 billion for networks, including US$15 billion for battery storage. Coal fired power generation (36% of global power mix in 2019) decreased by 3.5%, offset increase in gas fired (+3.2%), nuclear (+3.6%), wind (+12%) and solar (+24%).
By raising the level of its energy efficiency ambition, India could save some US$190 billion per year in energy imports by 2040 and avoid electricity generation of 875 terawatt hours per day, almost half of India’s current annual power.
2) Thermal Power sector:
The Indian thermal power sector is expected to rise at a CAGR of 1.6% between 2020-2025.
Thermal Energy Generation in India (TWh):
| Year | Thermal Energy Generation |
| 2016 | 1212.3 |
| 2017 | 1235.6 |
| 2018 | 1288.8 |
| 2019 | 1261.8 |
3) Hydro Power Sector:
The global hydro power sector is expected to register a 2.5% CAGR over the period of 2020-2025. India will have an installed hydropower generation capacity of 70,000 MW by 2030. India has around 13,000 MW of hydropower plants under various stages of construction and another 8,000 MW projects are in pipeline which will commence construction in the next 6-8 months. The current installed capacity of hydropower in the country stands at around 45,700 MW. India has estimated hydropower potential of 1,45,000 MW at 60% plant load factor.
4) Renewable Energy Sector:
Indian electricity consumption is projected to reach 15,280 TWh in 2040 from 4,926 TWh in 2012. By 2028 India can see renewable energy investment worth US$500 billion. Government has set PLI scheme worth Rs 4,500 crore for high efficiency solar PV modules manufacturing over a five year period. Government plans to establish renewable energy capacity of 500 GW by 2030. Indian renewable energy sector is the fourth most attractive renewable energy market in the world. India is ranked 4th in wind power, 5th in solar power. Installed renewable power generation capacity has gained pace over the past few years, posting a CAGR of 17.33% between FY16-20.
It is expected that by 2040, around 49% of India’s total electricity will be generated by renewable energy as more efficient batteries will be used to store electricity, which will further cut the solar energy cost by 66% as compared to the current cost. Use of renewables in place of coal will save India’s Rs 54,000 crore (US$8.43 billion) annually. Renewable energy will account for 55% of the total installed power capacity by 2030.
Renewable energy capacity (in GW):
| Year | Renewable energy Capacity (GW) |
| 2019 | 87.0 |
| 2022 | 227 |
Installed capacity for different Renewable energy sources (as of November 2020) (GW):
| Renewable energy sources | Installed capacity (GW) |
| Wind Power | 38.26 |
| Solar power | 36.31 |
| Bio – Power | 10.14 |
| Small Hydro | 4.74 |
Electricity generation from Renewable energy sources (billion units):
| Year | Electricity generation from renewable energy sources (Billion Units) |
| FY16 | 65.78 |
| FY17 | 81.51 |
| FY18 | 101.84 |
| FY19 | 126.76 |
| FY20 | 127.01 |
5) Solar Power Sector:
The Indian Solar market is expected to grow at CAGR of more than 40% during 2020-2025. The global solar energy market was valued at US$52.5 billion in 2018 and is expected to reach US$223.3 billion by 2026 at a CAGR of 20.5% from 2019 to 2026. The global solar PV market was valued at 448800 million USD in 2018 and is projected to reach 52200 million USD by 2025. The Indian solar power product market is projected to grow at a CAGR of more than 11% to surpass US$7.6 billion by 2024 on the back of increasingly stringent policy and regulatory framework and rising environmental concerns.
6) Solar Rooftop sector:
The robust growth of the Indian Solar rooftop market can be attributed to the government’s initiative of installing 40GW of solar energy capacity by 2022. The solar rooftop sector is expected to grow at a CAGR of 116% during 2019-2024. Solar rooftop is the fastest growing sub-sector of non-conventional energy in India. It is mainly due to its advantageous position in the solar belt (400S to 400N) that the country enjoys being one of the best beneficiaries of solar energy. Formulation of favorable government policies, increasing investments, rising cost competitiveness and tax benefits are major factors driving the industry. Due to strong push by national and local governments, the solar energy corporation of India and Indian railways have come up with various rounds of auctions. Indian railways has also committed to developing 5GW of solar by 2025. The corporation is currently buying power at Rs 5/kWh. The installation of solar power from an array of PV cells deployed along electrified tracks and on railway station rooftops will help them save 20% of their energy bill in the 1st year and 40% thereafter.
Total installed solar rooftop capacity in India as of November, 2020 by sector (Megawatts):
| Sector | Installed Capacity (MW) |
| Public | 776 |
| Residential | 804 |
| Commercial and Industrial | 4,373 |
India added 438 MW of solar in Q3, a rise of 114% over last quarter’s 205MW. While Q3 2020 fared better than the previous quarter, the solar installation were still about 80% lower from the same quarter last year, which saw nearly 2.2 GW of solar capacity addition. This fall was due to Covid-19. Electricity generated from solar in Q3 2020 crossed 13 billion units.
New Installed Capacity Additions in India first 9 months 2020:
| Sources Of Energy | Capacity (%) |
| Solar | 42 |
| Large Hydro | 7 |
| Wind | 15 |
| Coal | 27 |
| Gas | 1 |
| Biomass | 7 |
| Small Hydro | 0 |
| Waste to Energy | 0.7 |
The global solar rooftop market was valued at USD 66.84 billion in 2019 and is projected to grow at CAGR of 6.1% from 2020 to 2027.
6) Solar Pump Sector:
The global solar water pump market is valued at USD 1.19 billion in 2020 and is expected to reach USD 2.17 billion by 2026 growing at a CAGR of 10.5%. Agriculture in India contributes to 15% of the GDP and employs 50% of the country’s workforce. Reliable irrigation, therefore is a critical requirement not just for the farmer but also for the nation. As a result, India today has around 19 million grid connected pump-sets and 7 million diesel pump-set but still 55% of India’s net sown area remains unirrigated. However, erratic grid supply and high cost of diesel pumping continue to remain problem areas for farmers. Therefore solar pumps plays an important role for farmers providing irrigation undisrupted irrigation facilities throughout the year. Plus solar pumps are maintenance free as compared to diesel and grid based pumps. Benefits of Solar Pumps in India:
i)Replacement of 1million diesel pumps with solar pumps would result in diesel use mitigation of 9.4 billion liters over the life cycle of solar pumps which translates into diesel subsidy saving of Rs 8,400 crore and CO2 emission abatement of 25.3 Mn tonnes.
ii) Forex savings of USD 300 million per annum on diesel imports for replacement of 1 million diesel pumps translating into forex savings of USD 4.5 billion over pump life.
iii) over a period of time, electricity pump replacement can also triggered leading to the path to substantial reduction in the burden on the electricity grid.
iv) Better crop yields that can improve agricultural output by Rs 2,000 crore per annum.
Indian solar pump market is expected to grow at CAGR of 27% during 2018-2024.
7) Solar Power Equipment sector:
The Indian solar power equipment market is projected to grow at a CAGR of over 12% to reach USD 6.3 billion by 2024. The global solar equipment market is projected to real USD 121960 million by 2026, from USD 80870 million in 2020 growing at a CAGR of 7.1%.
8) Wind Energy Sector:
Global wind energy market was valued at over USD 93 billion in 2019 and is expected to reach USD 160 billion in 2026, growing at a CAGR of 8.4% from 2020 to 2026 and its annual installation is anticipated to exceed 101 GW by 2026.
Market Share (2020):
| Particulars | Market Share (%) |
| Offshore Installation | >14 |
| Electrical Infrastructure | 10 |
9) EV Charging station Sector:
India’s electric vehicle charging station market size is projected to grow at a CAGR of 41.2% during 2019-2025. Electric vehicle battery market is expected to grow at CAGR of 60.15%. The government of India has set a target for 30% adoption of electric vehicles by 2030. This will boost EV charging station sector in India. To fulfill this target government will need an investment of around USD 180 billion in EV vehicle production and EV charging station by 2030. NITI aayog government’s primary think tank, states that 70% of all commercial cars, 30% of private cars, 40% of buses and 80% of two wheelers and 3 wheelers sales would be electric by end of 2030. To meet this target India would India about 15-20 lakh charging stations by 2030. Clear opportunity for companies like TATA POWER. Global EV charging station is expected to grow at CAGR of 48.3% during 2020-2027 and is expected to reach 1,09,290.84 million by 2027.
Government Policies and subsidies supporting Power sector:
1)Development of Solar parks and Ultra Mega Solar Power projects:
Under this policy government aims to develop 40,000 MW of solar park by 2022-2024. Under this policy government provides Central Financial Assistance (CFA) of up to Rs 25 lakhs per solar park for preparation of detailed project Report. Besides this, CFA of up to 20 lakh per MW or 30% of the project cost, including grid-connectivity cost, whichever is lower, is also provided on achieving the milestones prescribed in the scheme.
2) Central Public sector undertaking Scheme II for setting up 12,000 MW grid connected solar PV power projects by the government producers with viability Gap funding support for self use or use by Government/government entities directly through distribution companies:
To set up solar PV projects through Government producers using domestic cells & modules in WTO compliant manner to facilitate national energy security and environment sustainability for government purpose. Under this policy government gives VGF of up to Rs 70 lakhs/MW.
3) Grid Connected Solar Rooftop Programme:
For achieving cumulative capacity of 40,000 MW from rooftop solar projects by the year 2022. Under this policy government provides CFA of 40% for capacity up to 3 kWp, CFA of 20% for capacity beyond 3 kWp and up to 10 kWp, CFA of 20% for GHS/RWA capacity up to 500 kWp. No incentives for capacity addition up to 10%, 5% incentive for addition beyond 10% and up to 15%, 10% incentives for addition beyond 15%.
4) Offgrid and decentralized Soalr PV Applications programme phase III:
3,00,000 solar street lights, 25,00,000 solar study lamps and 100 MWp of off grid solar power plants. CFA of 30% of the benchmark cost of the system or the tender cost, whichever is lower for solar street lights and solar power plants in general category and CFA of 90% of the benchmark cost or tender cost whichever is lower, in North Eastern states including Sikkim, Jammu & Kashmir, Himachal Pradesh, Uttarakhand, Lakshadweep and Andaman & Nicobar Islands. CFA of 85% for the solar study lamp.
5) Pradhan Mantri Kishan Urja Suraksha evam utthaan mahabhiyaan (PM KUSUM):
10,000 MW of decentralized ground mounted grid connected renewable power plants of individual plant size up to 2MW. Installation of 17.50 lakh standalone solar power agricultural pumps of individual pump capacity up to 7.5 HP. Solarisation of 10 lakh grid connected agricultural pumps of individual pump capacity up to 7.5 HP. Under this scheme CFA of 30% of the benchmark cost or the tender cost whichever is lower, of the stand-alone solar agriculture pump will be provided. The North Eastern states will get a CFA of 50%.
6) Government of India has announced a 20% basic custom duty on solar cells and modules.
India needs around USD 1.4 trillion into clean energy technology over the next two decade. Massive opportunities for renewable energy companies.
7) One sun, one world, one grid:
Last year Prime Minister Of India has announced the mega plan of One sun, one world, one grid or a trans national electricity grid supplying solar power across the globe.
8) Power discoms to get Rs 90,000 crore liquidity lifeline:
The Rs 90,000 crore reform linked injection will help in clearing outstanding dues of discoms.
9) Government has announced Rs 5,000 crore for EV charging stations which will have a coverage of 70 cities and 20% of country’s highways. Government aims to install at least 69,000 EV charging kiosks across petrol pumps pan India to accelerate adoption of the electric vehicle in the country.
10) FAME II:
Scheme with Rs 10,000 crore outlay to encourage adoption of electric and hybrid vehicles. In this 2 wheelers will EV will get incentives of Rs 20,000 each, Incentive of Rs 1.5 lakh each to 35,000 4 wheelers with an ex-factory price up to Rs 15 lakh. It will support 7,090 e-buses with an incentive of up to Rs 50 lakhs each having an price up to Rs 2 crore. All this will boost demand of EV charging points.
Tata power plants to expand its renewable energy capacity base from 4.1 GW to 15 GW by FY25. Company aims to bring down it debt from about Rs 40,000 crore to Rs 25,000 core by establishing infrastructure investment trust (InvIT) for renewable energy assets. Tata power sees restructuring of the renewable business into an InvIT as a divestment process along with the sale of non-core assets since the company plans to sells its stake in renewable business and get an equity for it. Company’s entire renewable portfolio of 2500 MW operational and 600 MW of under construction renewable projects will be moved into the InvIT. Company will transfer the entire renewable debt of Rs 12,000 crore into the InvIT as a disinvestment process along with the sale of non core assets. By this way debt of Rs 12,000 crore will be completely off from Tata Power balance sheet. Tata power has enhanced its renewable portfolio by 7% to 3,883 MW and plans to add 700 MW in the near future to take the total capacity to 4,600 MW. More than a third of Tata Power’s portfolio comes from clean energy. Of the 3,383 MW, 932 MW comes from wind and 1,705 MW comes from solar alone,
Recently Tata power bagged an order worth Rs 1,200 crore from state run NTPC ltd for setting up of 320 MW ground mounted solar project. Company has also won an auction conducted by Gujarat for 400 MW of projects to be built at Dholera Solar Park. Tata power has bagged a contract worth Rs 488 crore from the Kerala State electricity board limited to develop a 110 MW solar project. Tata power has partnered with SIDBI to provide easy financing scheme for MSME customers in rooftop solar segment. Tata power has signed a power purchase agreement with Apollo Gleneagles Hospitals, Kolkata to commission a solar carport in the city. This will be the biggest solar carport project in the country’s health sector spreading over 40,000 sq feet. The solar car port will have a capacity of keeping 125-150 vehicles. The hospital will buy entire power generated from the carport at Rs 6.5 per unit, which will be about 20-25% lower than the grid electricity price.
Tata power has received letter of intent from the Odisha Electricity Regulatory Commission for the distribution and retail supply of electricity in North eastern part, southern part and western part of Odisha. MG motor India and Tata Power have installed the maiden 60 kW superfast public EV charging station in Mangaluru. Till now company has deployed 15 superfast EV charging stations across 10 cities in India. And it plans to add more in future. Tata Power has partnered with central railway and UN environment programme to install charging points for electric vehicles at several railway stations in city of Mumbai. Tata power has received a LOA to build 95 MW of ground mounted solar PV project for GSECL. The order value of the project is approximately Rs 460 crores. With this addition, the order pipeline of Tata power solar stands at 4.2 GWp with an approximately value of Rs 12,500 crore, thereby cementing its position as India’s leading solar EPC player for seventh year in a row among utility scale.
Tata power has partnered with Tata Basera to promote its Solar rooftop services. Under this initiative, individual home builders purchasing rebars from Tata steel would benefit from additional and exclusive offers from Tata Power upon purchase of solar rooftop solution to their new homes. These exclusive benefits to Tata steel customers would be available across 240 districts and 2,800+ Tata steel dealers.
Financial Performance – Consolidated
Figures in Rs Crore
| Particulars | FY19 | FY20 | Change | Change(%) |
| Total Income | 30,370 | 29,510 | (860) | (3) |
| Depreciation & Amortisation Expenses | 2,393 | 2,634 | 241 | 10 |
| Finance Costs | 4,170 | 4,494 | 324 | 7 |
| Exceptional Item | 1,746 | 226 | (1,520) | (87) |
| Profit before taxes | 3,819 | 2,368 | (1,451) | (38) |
| Profit for the Year | 2,606 | 1,316 | (1,290) | (49) |
Property, Plant and Equipment, Investment Property & Intangible Assets (Figures in Rs crore):
| Particulars | FY19 | FY20 | Change | Change (%) |
| Property, plant & equipment | 41,102 | 44,663 | 3,561 | 9 |
| Intangible Assets | 1,562 | 1,362 | (200) | (13) |
| Capital Work in progress | 2,576 | 1,612 | (964) | (38) |
| Total | 45,240 | 47,537 | 2,397 | 5 |
Non-Current Investments (Figures in Rs crore):
| Particulars | FY19 | FY20 | Change | Change (%) |
| Investments in Joint Ventures & Associates | 12,513 | 13,203 | 690 | 6 |
| Statutory Investments | 374 | 168 | (206) | (55) |
| Others | 487 | 465 | (22) | (5) |
| Total | 13,374 | 13,386 | 462 | 5 |
Current Investments (Figures in Rs crore):
| Particulars | FY19 | FY20 | Change | Change (%) |
| Statutory Investments | 42 | Nil | (42) | (100) |
| Investments in Mutual Funds | 125 | 700 | 575 | 460 |
| Total | 167 | 700 | 533 | 319 |
Trade Receivables ( Figures in Rs crore):
| Particulars | FY19 | FY20 | Change | Change (%) |
| Non current | 193 | 30 | (163) | (84) |
| Current | 4,445 | 4,426 | (19) | (1) |
| Total | 4,638 | 4,456 | (182) | (4) |
Trade Payables (Figures in Rs crore):
| Particulars | FY19 | FY20 | Change | Change (%) |
| Non Current | 23 | Nil | (23) | (100) |
| Current | 5,481 | 5,095 | (386) | (7) |
| Total | 5,504 | 5,095 | (409) | (7) |
Assets Classified as Held for Sale (Figures in Rs crore):
| Particulars | FY19 | FY20 | Change | Change (%) |
| Assets classified as held for sale | 5,103 | 6,253 | 1,150 | 23 |
Tata power is targeting consolidated renewable energy revenue to jump to Rs 23,000 crore by FY25. Tata Power Mundra subsidiary has made a second tranche of repayment for its bank loans. With this all of the unit’s bank loan have been fully repaid. Loan of Rs 4,150 core have been fully repaid by the company. Tata power Q3FY21 consolidated PAT was up by 33% at Rs 346 crore compared to Q3FY20. Recently Government of India has said that about 20 thermal power plants will get converted into renewable power plants once its license gets over. Plus government has bring strict rules for carbon emitted from thermal power plants. This will boost Tata power renewable projects since company has said from now it will only invest in renewable projects and no new brown field or green field thermal plant will be started by Tata Power. By all these I prefer buy call on TATA POWER LTD at CMP of Rs 86.70 on 15 February 2021.