More Solar Power to Tata Power

Tata Power Ditches Coal Fired Power plants

Most of the renewable energy additions in India is coming from public/ government organizations or large private companies. The country has vowed to reduce its overall carbon footprint and is targeting to install 175 GW of renewable energy installations by 2022.

Tata Power one of the largest private producers in India has now decided to go off coal-fired power plants.  A report released by Institute for Energy Economics and Financial Analysis (IEEFA) ‘Tata Power: Renewables to Power Growth’ highlights the company’s long term plant to focus more on renewable energy and build out most of its new capacity from solar, wind and hydro through to 2025; despite the fact that TATA Power had earlier decided that a major expansion of coal-fired power would be required to meet the rising power demand in the country.

The company has been expanding its renewable energy footprint in India. You can read related stories here:

Tata suddenly goes big in Renewable through big bang billion dollar acquisition 

Tata Solar Power Becomes The Installer of India’s Largest Vertical Solar Farm

Trouble at Tata’s Mundra Power plant

Tata’s Mundra power plant which is a coal-fired power plant suffered losses equaling USD 191 million for the first three quarters of FY 2018-19, which is taking a toll over the company’s financials. In sharp contrast, the company’s renewable operations are yielding profits, recording an EBITDA of USD 249 million in FY 2017-18. More than 40 GW of the existing thermal power plants in India are in financial distress. All these factors have also led the private power producers to turn towards cleaner and greener renewable sources of power. Moreover, the economics of these sources have also improved making them financially viable when compared to conventional thermal power plants.

Tata Power ranks amongst the leading renewable energy companies in India having a huge presence in rooftop solar and electric vehicle charging. The company is targeting to install more than 11 GW of renewable energy as a part of its strategic intent by 2025. More such companies need to realize the fact that the future of a clean and green India lies in their hands and should come forward to generate more of their power needs from renewable sources of power, replacing the dirty and aging thermal power plants.

Also, read about Tata Solar Panels review.