In the last two years, Tata Power has been focussing on renewable energy and decentralised power generation and distribution systems with the help of microgrids. Thus, today, almost 34 per cent of Tata Power’s business comes from renewables, which will go up to 75 per cent in the coming years, even though the national averages are likely to remain significantly smaller. This was stated by Tata Power CEO and MD Praveer Sinha, at the NMIMS-FPJ webinar which was organised in association with Tata Power.
Even before he began talking about the energy scene in India, RN Bhaskar, consulting editor, FPJ pointed to the pool results from the audience (almost 2,000 had registered). The results showed that 64 per cent of the audience believed solar power would be the fastest growing sector in the energy basket. Almost 26 per cent of the audience believed that bad government policies hindered investment flows into the energy sector in India. Add to that another 7 per cent which believed that failure to respect and honour contracts was the reason for poor investment appetite. Thus, collectively, 33 per cent of the audience believed that the government had failed to create the right atmosphere for promoting investment in the energy sector.
Sinha, while speaking at the inaugural session on ‘The Future of Energy’, said, “In the last two years, we have taken a call that we will consolidate our business in India. So, we are divesting from all the investments that we made outside the country.” A recent disinvestment move was made when Singapore-based Trust Energy Resources Pte Ltd (TERPL), a fully-owned subsidiary of Tata Power, entered into an agreement with Oldendorff Carriers GmbH & Co. KG, Germany to sell three ships for USD 212.76 million.
He added, “We are very clear that we will be adding capacities and fresh investments in our country and most of it will go into renewable business,” Sinha elaborated. A couple of days ago, Tata Power Renewable Energy Limited (TPREL), the Company’s wholly-owned subsidiary, was permitted to develop a 120 MW solar project in Gujarat by Gujarat Urja Vikas Nigam Limited (GUVNL).
He said that three D’s would characterise the future growth of the energy sector. One was decentralisation, which meant that more power generation would move close to consumption centres, usually in villages. That would reduce long transmission lines which cause losses and theft of electricity. Microgrids would play a key part in this. The second D would be decarbonisation, which would require more investments in renewables. The third D was digitisation, which would allow for more customised offerings, more data collection, more customer profiling, better demand and supply management, and eventually lower costs for the customer.
Sinha explained that power is not completely a commercial business but a public utility. “There is public service involved in this.” Sinha added, “We have universal service obligation. We realise this and we are cognisant of our responsibility.” He asserted supply of power is for all — rich and poor alike. Thus, the company feels a sense of social responsibility there.
A few weeks back, the company took over the management of Central Electricity Supply Utility (CESU) after receiving the letter of intent from Odisha Electricity Regulatory Commission (OERC) for distribution and retail supply of electricity in Odisha's five circles. Thus, showing the consolidation plans of the company in the country.
Interacting with Sinha were Dr. Sharad Mhaisar, pro vice-chancellor, NMIMS University and RN Bhaskar, consulting editor, FPJ.
