Tata Power’s big-ticket bet on renewable energy, outlines capex of Rs 1.46 lakh crore over 5 years 

Tata Power is making a significant push into renewable energy, aligning with global trends that will shape both its investment objectives and capital expenditure (capex) plans.

In a recent media interaction, Praveer Sinha, CEO & MD of Tata Power, shared the company’s ambitious revenue target of Rs 1 lakh crore by 2030, with a net profit of Rs 10,000 crore.

Sinha shared the target during the launch of its 4.3 GW solar cell and module manufacturing unit in Gangaikondan, Tamil Nadu (near Tirunelveli, about 150 km from Madurai).

For FY24, Tata Power reported a revenue of Rs 61,542 crore, up from Rs 56,033 crore in FY23, and a net profit of Rs 4,280 crore compared to Rs 3,810 crore the previous year. The company expects its earnings before interest, taxes, depreciation, and amortization (EBITDA) to double from the current Rs 14,000-15,000 crore range.

Looking ahead, Tata Power plans substantial capex investment in the period from FY25 to FY30, with a projected spend of Rs 1.46 lakh crore — 2.5 times higher than the previous five years.

According to an Elara Capital report, the company aims to have renewable energy make up 65% of its energy mix by FY30, increasing its green capacity from 6.7 GW to 33 GW. This includes 10 GW of ongoing projects in solar, hydro, hybrid, and pumped storage.

The company also plans to expand its hydro capacity to 5 GW by commissioning two pumped hydro storage projects — Bhivpuri (1,000 MW) and Shirwata (1,800 MW) — by 2029, along with the 600 MW Khorlochhu hydro plant.

Sinha also outlined Tata Power’s future focus on renewable energy projects, pumped hydro storage plants, and an exploration into nuclear energy through small modular reactors (SMRs), though this initiative is still in the early stages.

Additionally, the new 4.3 GW solar module plant is fully booked with orders for the next 15-16 months, representing an investment of Rs 4,300 crore.

Investors have shown strong confidence, with Tata Power's stock rising over 700% in the last five years and 32% in the past year alone.