Tata Power shares gain as arm inks power purchase agreement with Tata Motors

Shares of Tata Power gained marginally on Tuesday 7 after the firm said Tata Power Renewable Energy (TPREL), a subsidiary of Tata Power Company, has signed a power purchase agreement with Tata Motors to co-develop a 131 MW wind-solar hybrid renewable energy project. This landmark agreement aims to generate approximately 300 million units of renewable electricity annually.

Tata Power stock rose marginally to Rs 395.25 on Tuesday against the previous close of Rs 390.95 on BSE. Market cap of the firm climbed to Rs  1.24 lakh crore. 

The project will help offset over two lakh tons of carbon dioxide emissions each year, delivering clean energy to six Tata Motors manufacturing facilities in Maharashtra and Gujarat. The PPA is structured under a group captive model, involving co-investment from both Tata Power and Tata Motors, supporting Tata Motors' RE100 objective of achieving 100% renewable electricity consumption ahead of the 2030 global target.

With this agreement, Tata Power Renewables' group captive portfolio has surpassed 1.5 GW, comprising 478 MW operational capacity and nearly 1.1 GW under development. These projects are slated for commissioning within the next six to 24 months. TPREL is focused on delivering customised round-the-clock energy solutions by integrating solar, wind, floating solar, and battery storage technologies.

This approach ensures uninterrupted clean power to diverse sectors such as steel, automotive, polymer, hospitality, retail, and real estate. TPREL's strategic initiatives underscore its role in advancing India's renewable energy infrastructure.

Tata Power Company, one of India's largest integrated power enterprises, manages an installed capacity of 14,453 MW, spanning renewable and conventional energy generation. The company operates across the entire power value chain, including hydro and thermal energy, transmission and distribution, coal and freight logistics, and trading. This comprehensive presence fortifies Tata Power's position in the energy sector, catering to the growing demand for sustainable power solutions. The collaboration with Tata Motors not only bolsters Tata Power's renewable efforts but also aligns with broader environmental goals.