May 20, 2024
Tata Power, the power generation, transmission, and distribution company of the Tata Group, is in active discussions with the group companies to supply green energy solutions to meet their energy demand. The company, which has decided to only invest in renewable energy projects going forward, is also in talks with various commercial and industrial customers to provide customised green as per the energy solutions.

Speaking with Business Standard over a telephone call, Praveer Sinha, chief executive officer and managing director, Tata Power, said they will be providing integrated green energy solutions to commercial and industrial customers. “There are a large number of companies who want to replace their existing energy supply with renewable energy. We are in discussion with large companies including multinationals. We are also in active discussions with companies within the Tata Group, including the new ones which are coming up,” Sinha said.

Within the Tata Group, the company will look at the ‘group captive’ route. “Even for non-Tata companies, we are exploring this mode so that our customers can avoid the cross-subsidy surcharges,” Sinha said.

The Union Ministry of Power recently amended the ‘Group Captive’ regulations stating that a captive power user in a group captive structure must hold a minimum of 26 per cent stake in the captive generating plant. A captive power plant is set up mostly by commercial and industrial users for their own electricity usage, given their high demand and specific supply requirements. The amended rules paved the way for companies to set up group captive plants through their subsidiaries. This helped them avoid the charges that state-owned power distribution companies levy on captive users.

He added that their expertise in the transmission and distribution segment would also be helpful in their offering. “We are all across the supply chain. We are in solar, battery, pumped hydro, transmission, and distribution. We can not only just supply green energy, we can also offer energy planning and load management solutions to commercial and industrial customers. I am not just an energy solutions company; we are an energy management company. This is our unique selling proposition,” said Sinha responding to the question on how they will stand apart with almost all energy companies becoming suppliers to the commercial and industrial segment. He added, the company will also offer carbon credit on their green power sale to the companies which require it.

This paper recently reported that there is a surge among the commercial and industrial segment of electricity consumers to tie up green energy through open access and/or group captive following the rule amendment by the Centre. Each of the large conglomerates in India have adopted their own strategies to source green power, outside the grid.

First Published: May 12 2024 | 5:51 PM IST