Tata Power consumers grow 4x to 12 mn with acquisition, new energy

Tata Power Company Ltd sets the stage for its transition to customer-focused power utility with an emphasis on clean energy. The power major focuses on enhancing electric vehicle (EV) charging infrastructure, offering automation solutions and adding renewable microgrids across the country to build its customer base.

The company’s customer base has increased to 12.5 million from three million in the last financial year. It acquired the power distribution rights in Odisha, which has added nine million customers to its fold last year. The company also distributes power in Delhi, Mumbai and Ajmer.

They added customers at other fronts also. Tata Power has installed over 600 public electric vehicle (EV) charging points in 102 cities, besides setting up charging points in over 3000 homes. The company targets to achieve an estimated two million tonnes CO2 savings every year from 2025 by installing charging points.

Another business segment that it creates is a home automation solution. It will help the residential customers to monitor and control devices remotely and enable energy and cost savings. The internet of things (IoT) based solutions is expected to open up a new market for Tata Power. It has also started offering smart energy solutions for large commercial and industrial clients. It will help monitor the energy usage of clients and to lower energy consumption and reduce carbon footprint.

Tata Power has installed 161 independent renewable micro-grid sites in Uttar Pradesh and Bihar and is planning to install another 62. By March 2027, the number of micro-grids will be increased to 10,000. Another business area that Tata Power pursues is the solar power pumps. It wants to install around 2.5 lakh pumps by March 2026.

Tata Power Solar—which is the largest solar roof player—has installed over 600 MW of rooftop capacity. It has over 30,000 customers across 100 cities.

At present, Tata power generates 69% of electricity from thermal coal-fired plants. It targets to grow the clean energy share to 80% by 2030. By the time it will phase out one of the oldest power plants in the country—the 930 megawatt (MW) Trombay coal-based plant, it will completely exit from fossil fuel-based power generation and realise its target of a complete clean energy company by 2048—when its obligations under the power purchase agreements (PPAs) will end.

The power major targets to add 2 gigawatt (GW) of solar and hybrid capacities annually to grow to 15 GW by 2025 and 25 GW by FY 30. The company is adopting practices to become fully water neutral before 2035 across businesses.

The company has been planning to hive off its renewable energy business into a separate Infrastructure Investment Trust (InvIT), and sell the stake to raise capital and reduce debt. However, the due diligence with half a dozen private equity investors failed to fructify yet.