We at Tata Power have excelled across all segments, achieving remarkable financial milestones and making significant strides in expanding our renewable footprints. Our commitment to innovative solutions and sustainable growth has enabled us to deliver round-the-clock power, ensuring we remain at the forefront of the energy transition.

A year of record-breaking financial achievements

We had reported our highest-ever PAT of `4,280 crore and revenue of `61,542 crore, showcasing our robust financial health. Our consolidated EBITDA grew by 26% to reach an all-time high of `12,701 crore. These achievements reflect our strategic focus on enhancing operational efficiency, expanding our renewables portfolio, and strengthening our market position across various segments of the energy sector.

Key milestones across businesses

In the reporting year, we have made significant strides in accelerating our transition towards a sustainable energy future through innovative solutions and strategic initiatives.

Our clean and green energy portfolio is on track to reach 15 GW in next 5 years, underscoring our commitment to providing round-the-clock renewable energy through a diverse mix of solar, wind, and Pumped Hydro Storage Projects (PSPs). We are setting up a 966 MW solar-wind hybrid plant to deliver round-the-clock renewable power to Tata Steel. Additionally, we have signed agreement with state-owned SJVN Ltd to set up 1.3 GW Firm and Dispatchable Renewable Energy (FDRE) project. Further, we have signed a MoU with the Government of Maharashtra to develop two large PSPs with a combined capacity of 2,800 MW, while generating employment for over 6,000 people. Our EPC business, commissioned India’s largest solar (100 MW) and battery (120 MWh) storage project in Chhattisgarh, further solidifying our leadership in renewable energy.

Our 4.3 GW cell and module manufacturing facility in Tirunelveli, Tamil Nadu, has commenced module production and cell line will be fully operational in the coming financial year which will play a pivotal role in meeting India’s growing renewable energy demand.

Simultaneously, we are strengthening our transmission portfolio through successful TBCB bids. Our transmission portfolio now stands at 6,277 Ckm, with recent wins including the Jalpura Khurja Power Transmission Limited and Bikaner-III Neemrana-II Transmission Limited, valued at `2,300 crore. We have secured an order worth approximately `1,744 crore to implement a smart metering project for Chhattisgarh State Power Distribution Company Limited; it showcases our execution expertise in delivering high-value and specialised projects aimed at transforming the power distribution domain.

The success of our Public-Private Partnership model is evident in the Odisha Discoms, which have become profitable within just three years. This success positions us well to capitalize on opportunities which may arise with privatisation of the power distribution sector.

Tata Power remains dedicated to being the preferred and trusted provider of green energy solutions and the utility of choice for every customer.

The global shift toward green energy

The global energy sector is currently experiencing a dynamic and multifaceted transformation. The spend on the clean-energy transition has hit record highs with total spending surging 17% last year to $1.8 trillion.

In 2023, the world’s demand for electricity grew by 2.2%, slightly less than the 2.4% growth observed in 2022, according to International Energy Agency. This modest increase was influenced by falling electricity consumption in advanced economies, where a lacklustre macroeconomic environment and high inflation led to reduced manufacturing and industrial output. Despite these challenges, the energy landscape is evolving with a strong commitment to sustainability.

While advanced economies faced these hurdles, regions like China, India, and many Southeast Asian countries demonstrated robust growth in electricity demand. It’s inspiring to witness how developing regions are not only rising to meet their growing energy needs but are doing so with a focus on sustainable and renewable energy sources.

This global shift is more than just a statistical trend; it reflects our collective responsibility and commitment to a greener planet. It’s about families in rural areas gaining access to electricity for the first time, factories powering sustainable production processes, and communities witnessing the positive impact of renewable energy projects.

India’s economic growth fuelling power demand

India’s strong economic performance is largely due to the industrial sector and substantial capital formation. Private consumption, accounting for 56% of GDP, increased by 3% despite subdued rural demand. Rising utilisation levels and healthy balance sheets will further boost private capital expenditure, complemented by investments in energy transition.

The peak power demand in India surged by 13% to reach 243 GW. Despite facing significant challenges, including stressed power supply during peak demand periods due to unseasonal heat waves, the country managed to avert a full-blown crisis through the government’s proactive and coordinated efforts. The expectation is that we will have a peak of 260 GW, and there is lot of work that needs to be done to ensure that this peak demand is met.

While the nation is taking measures to meet the growing demand for power, there is a significant focus towards transition to green energy. The country is the gearing up to achieve its goal of 500 GW of installed non-fossil fuel power capacity by 2030, in FY24, more than 70% of new capacity additions came from renewable sources. The country’s total installed energy capacity has now reached 442 GW, with renewables making up approximately 33% and hydro contributing 11%, as reported by the CEEW Centre for Energy Finance. For the first time, coal’s share in India’s total installed capacity fell below 50%. Solar energy, encompassing both grid-scale and rooftop installations, led the renewable capacity additions, representing approximately 81% of the total renewable energy addition in the reporting year. In January 2024, the government launched the “PM Surya Ghar Muft Bijli Yojana” to further promote Rooftop Solar adoption. With a total outlay of ` 75,000 crore, this initiative aims to provide financial assistance for the installation of solar panels on the roofs of 1 crore households.

Aligning with our nation’s ambitious renewable energy targets, renewable energy auctions soared to a record high of approximately 41 GW. The CEEW-CEF report also noted that around 95% of India’s targeted 50 GW annual RE bidding trajectory was met in FY24. The 47.5 GW of issued bids is almost three times the annual RE capacity added in recent years. Additionally, nuclear capacity expanded by 1.4 GW, marking the first increase since FY17.

India’s push towards sustainable mobility achieved significant progress, with electric vehicle sales surpassing the 1.5 lakh units mark in 2023. EVs now represent ~6.5% of total vehicles sold, up from 4.7% in 2022, driven by supportive government policies and the rapid expansion of charging infrastructure.

Embracing clean energy and digital technologies

As we navigate the rapidly changing energy landscape, we continuously explore the exciting potential of clean energy and digital technologies. By collaborating strategically with leading technology partners and esteemed research institutions, we foster innovation to develop groundbreaking energy solutions that address our consumers’ evolving needs while ensuring a seamless digital experience.

We have already made significant progress in this direction. Partnering with industry leaders, we promote clean and sustainable solutions in facility management.

Our commitment extends beyond clean energy generation to future-proofing India’s power distribution network by accelerating digitalisation and automation initiatives. This includes implementing hybrid meter technology, which enhances grid intelligence and fosters a more resilient and sustainable power infrastructure. Furthermore, we have launched the RFID-enabled ‘EZ CHARGE’ card to enhance customer experience.

We recognise that our strategic success hinges on the dedication and expertise of our exceptional workforce. Building and nurturing a diverse, growth-ready talent pool is paramount. We achieve this by placing a strong emphasis on learning and development initiatives, empowering our employees to excel. Furthermore, we are laser-focused on ensuring the overall health and safety of our people and partners. Our commitment extends beyond our internal team; we integrate ESG screening into our selection process for business associates, ensuring alignment with our sustainability values.

We are actively engaged in making a meaningful difference to the communities around our area of operations. A recent example is our collaboration with the Skill Council for Green Jobs to boost green energy skills in the country, while also aiming to increase the number of individuals to pursue careers in green jobs.

We are happy to see our work with Government institutions like NIEPID under Ministry of Social Justice & Empowerment contributing to neurodiversity-support- ecosystem; nationally. More such long-term programmes shall be our focus in the coming years.