InvestorQ : Why is Tata Power planning to invest up to Rs75,000 crore into renewable energy?
Dia Deshpande made post

Why is Tata Power planning to invest up to Rs75,000 crore into renewable energy?

swati Bakhda answered.
1 month ago

Actually Tata Power has decided to sharpen its renewable focus with a view to boosting its valuations. Tata Power has now laid out an extremely aggressive capex plan to invest more than Rs75,000 crore in renewable energy, but this will be done over a period of next 5 years. On an average, each year the investments would be in the range of Rs10,000 to Rs15,000 crore. In the process, Tata Power will look to progressively increase its green energy share to 60% of its overall energy portfolio by the year 2027.

Tata Power has existing capacity of 13.5 GW, which it plans to enhance to 30 GW by FY27. During this phase, the share of green and clean energy in the power portfolio will go up from the present 34% to 60% by 2027. The eventual target is to scale 80% by 2030. To support this kind of growth, it is also invest in the ecosystem, including a 4 GW solar cell and module manufacturing capacity in Tamil Nadu. Apart from investing Rs3,000 crore in this support project, it will focus on rooftop solar, electric vehicle chargers, solar pumps etc.

Tata Power has already raised Rs4,000 crore from Blackrock and Mubadala by selling a share in its renewable energy business. This is largely in sync with the commitments made by India at the 2021 United Nations Climate Change Conference (COP26) in Glasgow. The idea is to make Tata Power a benchmark for the power sector for ESG benchmarking. It plans to be carbon net-zero by 2045; 100% water neutral by 2030 and also to add zero waste to the landfill by year 2030. Tata Power Renewable surely has its task cut out.