Tata Power’s Bright Vision: Powering Growth Through Renewables and Innovation

Tata Power’s Green Leap: Ambitious Plans for Renewable Energy and Infrastructure Growth

Future Plans

1. Infrastructure Expansion:

   • Tata Power plans to complete its 5 GW renewable energy projects by FY26, focusing on utility-scale and hybrid solar-wind-storage projects.

   • Expansion in rooftop solar with initiatives like PM Surya Ghar and partnerships in states like Odisha, UP, and Rajasthan.

2. Pumped Hydro Projects:

   • Bhivpuri (1,000 MW): Work starts in January 2025, with an expected completion in FY29.

   • Shirawta (1,800 MW): Work to begin by mid-2025 pending approvals.

   • Bhutan (600 MW): Construction starts January 2025, with initial work like the diversion tunnel already underway.

3. Transmission and Distribution:

   • Four projects under implementation, two to be commissioned by FY25 and the remaining by FY26.

   • New 765kV line project in Odisha and plans for more transmission bids.

4. Clean Energy Solutions:

   • Expansion into bundled renewable energy solutions combining solar, wind, and storage.

   • Increased focus on industrial and commercial clean energy clients.

5. EV and Battery Storage:

   • Continued emphasis on EV charging and battery storage solutions to support India’s electrification goals.

Capex Plans

1. Solar Manufacturing:

   • Current capacity: 4.3 GW module manufacturing and 2 GW cell production, with an additional 2 GW cell capacity to stabilize by December 2024.

   • Plans to allocate capex for internal projects and limited third-party sales.

2. Hydro Projects:

   • Bhivpuri (1,000 MW): Capex estimated at INR 5,600 crores, with updated costs due to advanced configurations and site-specific needs.

3. Ongoing Renewable Projects:

   • Focus on completing internal renewable energy projects, with significant capex allocated to solar and hybrid renewable projects.

Growth Prospects

1. Revenue and Margins:

   • Targeting 2–2.5 GW annual renewable additions.

   • Margins in manufacturing to stabilize post-ramp-up, targeting 10-12% margins.

2. Pipeline Strength:

   • Total project pipeline at 21,668 MW, excluding newly approved projects like Bhivpuri.

3. Regulatory Approvals and Benefits:

   • Improved regulatory ratings (ICRA, CARE, and S&P Global) and amortization of regulatory assets (Delhi Discom).

4. Market Position:

   • Leadership in rooftop solar and captive renewable projects with strategic focus on complex hybrid and storage solutions.

Order Book

1. Total Order Book:

   • Approx. INR 15,000 crores as of Q2 FY25, with 50% for internal Tata Power projects.

   • EPC pipeline includes projects for Tata Group companies and external clients.

2. Execution Timeline:

   • Most third-party projects expected to complete by March 2025.

   • Internal renewable projects phased out by FY26, with new pipeline for FY27+.

In conclusion, Tata Power's robust capex and project execution focus align with its goal of becoming a leader in renewable energy and clean power solutions. Strategic investments in solar, hydro, and transmission will drive its growth, with a strong order book supporting near-term execution and long-term profitability.