Tata Power focusing on renewable energy segment in India by divesting investments overseas

Tata Power, in last two years has been focusing on renewable energy and decentralised power generation and distribution systems with the help of microgrids. Almost 34% of the business of Tata Power comes from renewables. It will reach up to 75% in coming years even though the national averages are likely to remain significantly smaller. This was stated by Tata Power CEO and MD Praveer Sinha, at a webinar which was organised in association with Tata Power.

At the inaugural session on ‘The Future of Energy’, he said, “In the last two years, we have taken a call that we will consolidate our business in India. So, we are divesting from all the investments that we made outside the country.” The company has recently made a disinvestment move when its fully owned subsidiary based out of Singapore, Trust Energy Resources Pte Ltd (TERPL) entered into an agreement with Oldendorff Carriers GmbH & Co. KG, Germany to sell three ships for USD 212.76 million.

He added, “We are very clear that we will be adding capacities and fresh investments in our country and most of it will go into renewable business,” Sinha elaborated. A couple of days ago, Tata Power Renewable Energy Limited (TPREL), the Company’s wholly-owned subsidiary, was permitted to develop a 120 MW solar project in Gujarat by Gujarat Urja Vikas Nigam Limited (GUVNL).

He further added that three D’s would describe the future growth of the energy sector. One was decentralisation, which meant that more power generation would move close to consumption centres, usually in villages. That would reduce long transmission lines which cause losses and theft of electricity. Microgrids would play a key part in this. The second D would be decarbonisation, which would require more investments in renewables. The third D was digitisation, which would allow for more customised offerings, more data collection, more customer profiling, better demand and supply management, and eventually lower costs for the customer.

He explained that power is for public utility and not entirely a commercial business. “There is public service involved in this.” Sinha added, “We have universal service obligation. We realise this and we are cognisant of our responsibility.” According to him, power is for both rich and poor and thus the company feels a sense of social responsibility.

Central Electricity Supply Utility (CESU) after receiving the letter of intent from Odisha Electricity Regulatory Commission (OERC) for distribution and retail supply of electricity in Odisha's five circles. Thus, showing the consolidation plans of the company in the country.