Tata Power's Solar Leap: 11.6 GW Capacity Milestone Reached

Tata Power’s renewable energy arm, a major green energy player in India, TPREL (Tata Power Renewable Energy Ltd.), has an important project announcement. It is about the successful commissioning of a major 300 MW (AC) solar power project for the state-owned National Hydroelectric Power Corporation (NHPC) Ltd.

The project is located in Karnisar Bhatiyan, in the Bikaner region of Rajasthan. It has a total capacity of 450 MWp (DC). TPREL has executed it as part of a large-scale EPC (Engineering, Procurement, and Construction) contract.

This new addition has pushed TPREL’s total renewable utility capacity to an 11.60 GW milestone. The project involved the installation of around 775,000 solar modules. It is expected to generate 17,230 million units of green electricity over its lifetime. Thus, it is creating a notable environmental impact.

Shares of Tata Power, the parent company, closed 1.12% higher at ₹392.75 on the NSE on Nov 17, post announcement. So, the company is rapidly expanding its green footprint. Now, there is an important question for investors. Is Tata Power’s aggressive renewable expansion fully priced in? Or, is there more upside as it is nearing its 2030 targets?

What is Unique About This Bikaner Project?

This project is not simply another solar farm. It is showcasing TPREL’s advanced engineering and domestic capability. TPREL has executed this massive installation in the harsh desert terrain of Rajasthan. They have done this by overcoming extreme temperatures and logistical challenges. The project is outstanding in three major aspects.

• Advanced Tech - The plant has integrated bifacial modules and high-performance inverters. These technologies are designed to maximise energy generation even under difficult conditions. More importantly, it is using DCR-compliant cells (Domestic Content Requirement). This is in perfect alignment with the GoI (Government of India) "Make in India" solar sector push.
  
• Power Offtake - This facility will supply the entire power generated to the PSPCL (Punjab State Power Corporation Limited) under a power purchase agreement. Thus, these can be a steady and reliable revenue stream for NHPC, the asset owner.
  
• Scale and Impact - The project is set to generate >17 bn green electricity units in its lifetime. With this, the project is expected to offset around 13.8 million tons of CO2 emissions and contribute considerably to India's climate goals.
  

This successful commissioning has highlighted TPREL's heavy-weight EPC capabilities. It has proved that it can deliver complex, large-scale projects for third-party clients like NHPC on time and on-par with high technical standards.

How Can This Boost TPREL's Green Portfolio?

For Tata Power, this commissioning is a strategic win that is reinforcing its renewable sector leadership. The addition has brought TPREL's portfolio metrics to impressive new heights.

• Total Renewable Capacity is now standing at 11.6 GW.
• Of this total, 5.8 GW is now fully operational (comprising 4.7 GW of solar and 1.10 GW of wind). An equal amount, 5.8 GW, is currently under various stages of implementation.
• This project adds to TPREL’s growing track record as an EPC contractor. The company has now commissioned more than 4.9 GW of third-party EPC projects to date.

This dual engine of growth is building its own assets while simultaneously executing large EPC contracts for others. With this, Tata Power can capture value across the entire renewable energy value chain. The huge 5.8 GW pipeline has major projects like:

• A 1 GW solar plant for SJVN
• A 300 MW project for NLC

This can provide strong revenue visibility for the next 6 to 24 months as these projects come online.

Tata Power on Track for Its 2030 Vision

The Bikaner project is the main piece of a much larger puzzle. It is directly in alignment with Tata Power's aggressive roadmap to become a dominant force in India's clean energy transition. The company is targeting a considerable contribution to India's goal of 500 GW non-fossil fuel capacity by 2030.

For this, Tata Power has set ambitious near-term targets for itself related to adding capacity, reaching new operational targets and a long-term goal of adding 2 to 2.5 GW of renewable capacity annually.

Tata Power is validating its execution capability by consistently delivering on these targets. Thus, for investors, the story is shifting from "plans" to "plants on the ground."

Source

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ET Energy
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Economic Times