Wiki source code of Tata Power Co Ltd
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| 1 | {{box cssClass="floatinginfobox" title="**Contents**"}} | ||
| 2 | {{toc/}} | ||
| 3 | {{/box}} | ||
| 4 | |||
| 5 | = Summary = | ||
| 6 | |||
| 7 | * Tata Power is one of India's largest integrated power companies | ||
| 8 | * Tata Power present across the entire power value chain of conventional & renewable energy, power services and next-generation customer solutions including solar rooftop, EV charging stations and home automation. | ||
| 9 | * Tata Power, together with its subsidiaries & joint entities, has 12772 MW of generation capacity where 30% comes from clean and green sources. | ||
| 10 | * Tata Power Renewable Energy commissions 100 MW solar project in Raghanesda Solar Park, Gujara in August 2021. | ||
| 11 | |||
| 12 | [[image:TATAPOWER0.jpg]] | ||
| 13 | |||
| 14 | |||
| 15 | = Company Overview = | ||
| 16 | |||
| 17 | |||
| 18 | Tata Power (NSE:TATAPOWER) is one of India's largest integrated power companies, present across the entire power value chain of conventional & renewable energy, power services and next-generation customer solutions including solar rooftop, EV charging stations and home automation.{{footnote}}https://www.tata.com/business/tata-power{{/footnote}} | ||
| 19 | |||
| 20 | |||
| 21 | Formerly known as Tata Electric, Tata Power has pioneered technology adoption in the utility sector with many firsts to its credit including setting up India's first hydroelectric power station in 1915. | ||
| 22 | |||
| 23 | |||
| 24 | Tata Power, together with its subsidiaries & joint entities, has 12772 MW of generation capacity where 30% comes from clean and green sources. They look to shape the future through its green initiatives. From energy-saving power services, to making India EV ready with multi-city EV charging stations and being India's #1 rooftop solar provider, Tata Power is continuously delivering green technology for the smart consumer. | ||
| 25 | |||
| 26 | |||
| 27 | [[image:TATAPOWER1.jfif]] | ||
| 28 | |||
| 29 | |||
| 30 | == Key Milestones == | ||
| 31 | |||
| 32 | |||
| 33 | |1915|Commissioned first hydroelectric power generating system of 40 MW, subsequently upgraded to 72 MW at Khopoli | ||
| 34 | |1922|Commissioned second hydro power station of 40 MW, subsequently upgraded to 72 MW at Bhivpuri | ||
| 35 | |1927|Commissioned third hydro power station of 90 MW, subsequently upgraded to 150 MW at Bhira | ||
| 36 | |2007|Completed 50.4 MW Khandke wind farm project | ||
| 37 | |2011|Commissioned 3 MW Mulshi solar plant in Maharashtra | ||
| 38 | |2012|Commissioned 25 MW solar plant at Mithapur, Gujarat | ||
| 39 | |(% rowspan="3" %)2014|Acquired 39.2 MW wind farm near Dwarka, Jamnagar in Gujarat | ||
| 40 | |Completed commissioning of 32 MW wind farm project in Maharashtra | ||
| 41 | |Commissioned 28.8 MW solar power project at Palaswadi, Maharashtra | ||
| 42 | |2015|Commissioned first cross border hydro power project registered under the United Nation Framework Convention on Climate Change’s (UNFCCC) Clean Development Mechanism for 126 MW at Dagachhu, Bhutan | ||
| 43 | |(% rowspan="3" %)2016|Commissioned 120 MW Itezhi tezhi hydro power project in Zambia | ||
| 44 | |Strengthened its renewable portfolio by commissioning 44 MW Lahori wind farm project in Madhya Pradesh | ||
| 45 | |Acquired 1,010 MW renewable assets of Welspun | ||
| 46 | |(% rowspan="2" %)2017|Constructed 187 MW hydro project in Georgia | ||
| 47 | |Increased non-fossil operating capacity to 3060 MW | ||
| 48 | |(% rowspan="3" %)2018|Integrated EV charging stations in Mumbai | ||
| 49 | |Launched extensive residential solar rooftop solution across India | ||
| 50 | |Developed 250 MW of solar projects in Tumkur, Karnataka and commissioned 100 MW Anantapur solar park in Andhra Pradesh | ||
| 51 | |(% rowspan="5" %)2019|Won 105 MWp bid for one of the world’s largest floating solar plant to be installed at Kayamkulam, Kerala | ||
| 52 | |Recognised for addressing the challenge of open defecation by the Government of Netherlands | ||
| 53 | |Developed a 100 MW and a 250 MW solar project in Gujarat | ||
| 54 | |Commissioned 150 MW solar project in Rajasthan | ||
| 55 | |Partnered with NTT Com-Netmagic to build 50 MW solar power project | ||
| 56 | |||
| 57 | == Products & Services == | ||
| 58 | |||
| 59 | |||
| 60 | **Power Supply** | ||
| 61 | |||
| 62 | Caring for its 9.5 million customers across select cities, Tata Power, along with its partners, work on delivering uninterrupted power supply and beyond-the-meter services to ensure customer convenience and satisfaction. | ||
| 63 | |||
| 64 | **city covers** | ||
| 65 | |||
| 66 | * MUMBAI | ||
| 67 | * DELHI | ||
| 68 | * AJMER | ||
| 69 | * ODISHA | ||
| 70 | |||
| 71 | **EV Charging Solutions** | ||
| 72 | |||
| 73 | With Tata Power EV charging Solutions across Home, Office, Mall, Hotels, Retail Outlets and Places of Public Access. | ||
| 74 | |||
| 75 | The company provides EV Charging Solution for | ||
| 76 | |||
| 77 | * Fleet Organization | ||
| 78 | * Offices and Workplaces | ||
| 79 | * Malls & Hotels | ||
| 80 | * Homes & Housing Societies | ||
| 81 | |||
| 82 | **EV Charging using Tata Power EZ charge app** | ||
| 83 | |||
| 84 | Helps to locate charging point and has payment solution. | ||
| 85 | |||
| 86 | |||
| 87 | **Solar Rooftops** | ||
| 88 | |||
| 89 | India's Undisputed Solar Rooftop Leader with pan Indian presence. | ||
| 90 | |||
| 91 | * Residential | ||
| 92 | * Commercial & Industrial | ||
| 93 | * Institution | ||
| 94 | |||
| 95 | **Solar Pumps** | ||
| 96 | |||
| 97 | The company's solar power pumps support various applications including field irrigation or supplying potable water for the communities, while drawing water from underground multiple water sources as per requirement. | ||
| 98 | |||
| 99 | * Submersible Water Pumps | ||
| 100 | * Surface Water Pumps | ||
| 101 | |||
| 102 | **Solar Module and Cells** | ||
| 103 | |||
| 104 | The company offer bankable tier-1 solar modules to multiple customer segments, with a range of configurations, power outputs and module sizes.{{footnote}}https://www.tatapower.com/products-and-services/solar-module-and-cells.aspx{{/footnote}} | ||
| 105 | |||
| 106 | Recognized as one of the Tier-1 bankable module manufacturer internationally, with over 1.4 GW modules shipped globally, Tata Power is known for its technology innovation and cutting-edge manufacturing. | ||
| 107 | |||
| 108 | |||
| 109 | **Microgrids** | ||
| 110 | |||
| 111 | TP Renewable Microgrid Ltd. will be operated and managed by Tata Power, India's largest integrated power company with approximately 11,000 MW of installed generation capacity and over 2.6 million customers under management across Delhi, Ajmer and Mumbai.{{footnote}}https://www.tatapower.com/products-and-services/micro-grids.aspx{{/footnote}} | ||
| 112 | |||
| 113 | |||
| 114 | **Solar RO Systems** | ||
| 115 | |||
| 116 | The company's solar powered water purifier solution provide the latest water cleansing technologies in remote and rural India. | ||
| 117 | |||
| 118 | |||
| 119 | **Home Automation Solution** | ||
| 120 | |||
| 121 | Tata Power EZ HOME is an IoT solution which allows you to operate, schedule, monitor appliances like lighting, fans, ACs, washing machines, geysers, TVs, refrigerators, etc. with your phone and with voice control via Google Assistant or Alexa. {{footnote}}https://www.tatapower.com/ezhome/{{/footnote}} | ||
| 122 | |||
| 123 | * Switches: Modular switches that work with Google Assistant and Alexa. Must haves for your smart home. | ||
| 124 | * Convertors: Convert Your Conventional Switches to Smart Switches, and operate them from anywhere. These are Google Assistant and Alexa friendly. | ||
| 125 | * Controllers: 120W Fan Electric Controller for your home. Works with Google Assistant and Alexa. | ||
| 126 | |||
| 127 | == Plant & Projects == | ||
| 128 | |||
| 129 | |||
| 130 | **Solar Generation Projects** | ||
| 131 | |||
| 132 | * Mithapur - 25 MW | ||
| 133 | * Pavagada - 150 MW | ||
| 134 | |||
| 135 | **Wind Generation Projects** | ||
| 136 | |||
| 137 | * Poolavadi Wind Farm | ||
| 138 | * Solar EPC Ground-Mount Projects | ||
| 139 | * Anantapur-100 MW | ||
| 140 | * Andhra Sugars - 3MW DC / 2.5MW AC | ||
| 141 | |||
| 142 | **Solar Rooftop Projects** | ||
| 143 | |||
| 144 | * RSSB-EES - 12 MW | ||
| 145 | * CCI - 820.8KWP | ||
| 146 | * Cochi Carport - 2.67 MW | ||
| 147 | * Suvidha Housing Society - 5.25 KW | ||
| 148 | |||
| 149 | **Hydro Generation Projects** | ||
| 150 | |||
| 151 | * Bhira - 300 MW | ||
| 152 | * Itezhi-Tezhi Hydro - 120 MW | ||
| 153 | * Bhivpuri - 75 MW | ||
| 154 | * Khopoli - 72 MW | ||
| 155 | |||
| 156 | **Thermal Generation Projects** | ||
| 157 | |||
| 158 | * Maithon- 1050 MW | ||
| 159 | * CGPL - 4150 MW | ||
| 160 | * Trombay - 930 MW | ||
| 161 | * Jojobera - 427.5 MW | ||
| 162 | * IEL, Unit 5 ,Jamshedpur - 120 MW | ||
| 163 | * Prayagraj - 1980 MW | ||
| 164 | |||
| 165 | **Waste Heat Recovery Generation** | ||
| 166 | |||
| 167 | * Haldia - 120 MW | ||
| 168 | * IEL, Unit 6, Jamshedpur - 120 MW | ||
| 169 | * IEL, Kalinganagar + DG - 175 MW | ||
| 170 | |||
| 171 | **Microgrids** | ||
| 172 | |||
| 173 | * Solar Microgrids - Ladakh, India - 1 MW | ||
| 174 | * Solar Microgrid - Sundarbans, West Bengal, India - 110 KW | ||
| 175 | |||
| 176 | [[image:TATAPOWER2.jpg]] | ||
| 177 | |||
| 178 | |||
| 179 | |||
| 180 | == Major Subsidiaries == | ||
| 181 | |||
| 182 | |||
| 183 | **India** | ||
| 184 | |||
| 185 | * Af-Taab Investment Company Limited | ||
| 186 | * Chirasthaayee Saurya Limited | ||
| 187 | * Clean Sustainable Solar Energy Private Limited (subsidiary of Walwhan Renewable Energy Limited) | ||
| 188 | * Coastal Gujarat Power Limited | ||
| 189 | * Dreisatz Mysolar24 Private Limited (subsidiary of Walwhan Renewable Energy Limited) | ||
| 190 | * Dugar Hydro Power Limited | ||
| 191 | * Industrial Energy Limited | ||
| 192 | * Maithon Power Limited | ||
| 193 | * MI Mysolar24 Private Limited (subsidiary of Walwhan Renewable Energy Limited) | ||
| 194 | * NDPL Infra Limited (subsidiary of Tata Power Delhi Distribution Limited) | ||
| 195 | * NELCO Limited | ||
| 196 | * NELCO Network Products Limited (subsidiary of NELCO Limited) | ||
| 197 | * Nivade Windfarm Limited (subsidiary of Tata Power Renewable Energy Limited) | ||
| 198 | * Northwest Energy Private Limited (subsidiary of Walwhan Renewable Energy Limited) | ||
| 199 | * Poolavadi Windfarm Limited (subsidiary of Tata Power Renewable Energy Limited) | ||
| 200 | * Powerlinks Transmission Limited | ||
| 201 | * Solarsys Renewable Energy Private Limited (subsidiary of Walwhan Renewable Energy Limited) | ||
| 202 | * Supa Windfarm Limited | ||
| 203 | * Tata Power Delhi Distribution Limited | ||
| 204 | * Tata Power Green Energy Limited | ||
| 205 | * Tata Power Jamshedpur Distribution Limited | ||
| 206 | * Tata Power Renewable Energy Limited | ||
| 207 | * Tata Power Solar Systems Limited | ||
| 208 | * Tata Power Trading Co. Limited | ||
| 209 | * Tatanet Services Limited (subsidiary of NELCO Limited) | ||
| 210 | * TCL Ceramics Limited | ||
| 211 | * TP Ajmer Distribution Limited | ||
| 212 | * TP Akkalkot Renewable Limited | ||
| 213 | * TP Central Odisha Distribution Limited | ||
| 214 | * TP Kirnali Limited (subsidiary of Tata Power Renewable Energy Limited) | ||
| 215 | * TP Kirnali Solar Limited | ||
| 216 | * TP Northern Odisha Distribution Limited | ||
| 217 | * TP Renewable Microgrid Limited | ||
| 218 | * TP Roofurja Renewable Limited | ||
| 219 | * TP Saurya Limited | ||
| 220 | * TP Solapur Limited (subsidiary of Tata Power Renewable Energy Limited) | ||
| 221 | * TP Solapur Solar Limited | ||
| 222 | * TP Southern Odisha Distribution Limited | ||
| 223 | * TP Western Odisha Distribution Limited | ||
| 224 | * Walwhan Renewable Energy Limited (subsidiary of Tata Power Renewable Energy Limited) | ||
| 225 | |||
| 226 | **Foreign** | ||
| 227 | |||
| 228 | * Bhira Investments Limited | ||
| 229 | * Bhivpuri Investments Limited | ||
| 230 | * Far Eastern Natural Resources LLC | ||
| 231 | * Khopoli Investments Limited | ||
| 232 | * PT Sumber Energi Andalan Tbk | ||
| 233 | * Tata Power International Pte. Limited | ||
| 234 | * Trust Energy Resources Pte. Limited | ||
| 235 | |||
| 236 | [[image:TATAPOWER3.jpg]] | ||
| 237 | |||
| 238 | |||
| 239 | = Industry Overview = | ||
| 240 | |||
| 241 | == Global Power Sector == | ||
| 242 | |||
| 243 | The global power sector is on the cusp of a major transformation with new energy sources and new players entering the arena of energy supply. Nations, corporates, individuals across the globe are rising to the cause of climate change, and are consciously opting for greener sources of energy, resulting in the rising share of renewables in the debate on power sector’s transition portfolio mix. The COVID-19 pandemic has further stimulated the debate on power sector’s transition from fossil fuels to cleaner energy sources. Additionally, electric vehicles, digitalisation, battery storage, cyber security, big data analytics, hydrogen fuel are some of the key emerging trends that could profoundly define the way the global power and renewable markets operate in the coming years. {{footnote}}https://www.tatapower.com/investor-relations/tata-power-2021/pdf/TataPower-full-annual-report-2021.pdf{{/footnote}} | ||
| 244 | |||
| 245 | The COVID-19 pandemic brought about unprecedented changes in 2020 to the power sector worldwide, with significant demand disruptions, supply chain bottlenecks, decline in fuel prices, changes in energy consumption profiles, asset sales and acquisitions. It imparted the worst ever impact delivered by any crisis on the global economy and the power sector. Global Gross Domestic Product (GDP) posted the biggest decline of -3.3% as per IMF April 2021 report in the past 20 years and the power demand contraction of 1% was the sharpest registered in more than 50 years. Power demand is likely to recover slowly from the COVID-19 disruptions, driven by developing economies such as China and India, which have shown growth resilience and a steady increase in power demand, following the easing of lockdown measures. While the extent of demand revival in 2021 remains to be seen, the roll out of vaccines and policy support-led revival in economic activities (6% world GDP growth projected for 2021 by IMF) create grounds for the recovery of power demand in most countries. | ||
| 246 | |||
| 247 | With an increasing number of nations responding to the challenge of climate change, the energy landscape is undergoing change, with greater focus being lent to cleaner sources of energy. More than 100 countries have pledged carbon neutrality by 2050 and many more such commitments are on the horizon. Similar announcements on the corporate front have gathered pace worldwide. Be it energy companies or those in the IT/technology space, both utility and non-utility companies are undertaking 100% carbon free initiatives. | ||
| 248 | |||
| 249 | Falling costs of wind and solar power are making way for increased investments in renewables that are now the preferred mode for energy generation and sourcing. Renewable capacity addition has beaten all previous records, with more than 260 GW being added in 2020, exceeding 2019 growth by 50% as per the report released by International Renewable Energy Agency (IRENA). Share of renewables in new capacity additions rose considerably for the second year in a row, accounting for more than 80% of the capacity additions, with solar and wind accounting for 91% of the renewables. As per International Energy Agency (IEA) World Energy Outlook 2020, renewables are expected to overtake coal as the primary means of producing global electricity in 2025. | ||
| 250 | |||
| 251 | Reduction in costs of newer technologies is helping greater penetration of such technologies and shifting the power profile towards more variable capacities. The same is leading to rising flexibility needs for power systems. Coal and gas fired power plants are currently the main source of flexibility in many systems, with additional contributions from hydro and nuclear. Energy storage systems are gaining strength, as evidenced from the rising number of new solar projects that come with battery storage, lower costs, improved performance indices and policy support are creating opportunities for battery storage market. The global energy storage market grew significantly even in the pandemic year, achieving record installations of 5.3 GW in 2020 from 3.4 GW in 2019, led by China, and followed by the US and Europe. It is expected to grow substantially in the next couple of years, with the Asia-Pacific region accounting for more than 50% of the global market share. | ||
| 252 | |||
| 253 | |||
| 254 | == Indian Power Sector == | ||
| 255 | |||
| 256 | India’s power sector witnessed many successes in the recent years, including energy access being extended to millions of households, the adoption of energy-efficient LED lighting by most households and expansion of renewable power sources, led by solar. However, the COVID-19 crisis has complicated the efforts to resolve other pressing issues that loom large across the power value chain. Among these are reliable power supply, the ailing financial health of Distribution Companies (Discoms) and rising pollution levels. | ||
| 257 | |||
| 258 | The year 2020 was marked by one of the biggest health challenges faced by the world. It impacted all segments of the economy, and the power sector was no exception. India’s demand for power fell significantly by 8.5% in the first half of FY21 but picked up pace in the second half of the fiscal, with the easing of lockdown measures. In fact, the country recorded the highest ever peak power utilisation of 190 GW in FY21. | ||
| 259 | |||
| 260 | The coal sector is set for revival in 2021, buoyed by improving economic activities, although the government’s thrust on renewable energy sources continues and the need for clean energy appearing to be more pressing than in pre-COVID times. The Government of India is focussing on renewable energy growth in alignment with sustainability and carbon emission reduction targets. It plans to raise renewable energy capacity from targeted level of 175 GW in 2022 to 450 GW by 2030. Even India’s coal behemoth, Coal India Limited (CIL), and its largest thermal power PSU, NTPC Limited, are diversifying into cleaner energy technologies. | ||
| 261 | |||
| 262 | Government has over the last year moved several regulatory and legislative changes to bring in reforms in the sector. Some of these changes are covered in the following section and the key highlights include privatization of Discoms in States and Union Territories, a special one-time liquidity infusion of ₹ 90,000 crore (that was scaled up to ₹1.35 lakh crore), focus on consumer rights through the Draft Electricity (Rights of Consumers) Rules, 2020, impetus to domestic solar manufacturing through Basic Custom Duty (BCD) imposition and Performance Linked Incentives (PLI) scheme, opening up commercial mining for private players, and announcement of ₹3.05 trillion reform-based result linked scheme for distribution. The success of some of these interventions like privatisation of Odisha Discoms will be key for setting trend in the sector. | ||
| 263 | |||
| 264 | |||
| 265 | === Generation === | ||
| 266 | |||
| 267 | India’s installed generation capacity stands at 382.15 GW as on 31st March 2021, which excludes 55 GW of captive generation capacity. Grid connected capacity addition during FY21 was 12 GW vis-à-vis 14 GW in FY20. | ||
| 268 | |||
| 269 | |||
| 270 | ==== Thermal Generation ==== | ||
| 271 | |||
| 272 | Coal-based capacities still account for more than half of India’s total installed capacity, though the share has been consistently declining over the past ten years from 75% in FY11 to about 55% in FY21, indicating subdued investor interest in the sector. This is also evident in the Plant Load Factor (PLF) of thermal plants that have witnessed a declining trend in the last decade, falling from 75% in FY11 to 54.49% in FY21. | ||
| 273 | |||
| 274 | |||
| 275 | ==== Renewable Generation ==== | ||
| 276 | |||
| 277 | Installation of renewables capacity has been on the rise from 11% share in FY11 to 25% in FY21. Several policy initiatives by the government have provided the muchneeded boost to the sector. Favourable cost economics has also provided impetus for the rapid increase in renewable based capacities. The government’s push towards clean energy has garnered interest among global investors, and this is reflected in project tenders getting oversubscribed amid strong participation by global investors and the cost of solar projects dropping further, as seen in the new record low tariff of ₹ 1.99/unit discovered in 500 MW solar projects of the Gujarat Urja Vikas Nigam Ltd. (GUVNL). Sustained enabling regulations for the renewables sector are visible through various policy interventions by the government, catering to both the demand and supply side, such as the ‘Must Run’ status for renewables, lifting of the tariff cap, thrust on domestic solar manufacturing, enhancing the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM) scheme, priority sector lending, Domestic Content Requirement (DCR) projects and so on. However, delay in Power Purchase Agreement (PPA) tie-ups, renegotiation/cancellation of bids, land issues, supply chain disruptions, etc. are some of the challenges that need to be resolved for the sector to meet its targeted growth | ||
| 278 | |||
| 279 | |||
| 280 | ==== Fuel ==== | ||
| 281 | |||
| 282 | Coal produced by CIL and its subsidiaries declined by 1% during FY21 to 596 MT (from 602 MT in the previous fiscal), missing its FY21 target of 660 MT. The decline is mainly due to lower demand from power plants during the fiscal amid reduced electricity requirement. Thermal coal imports declined sharply by 18% due to firm prices and high freight rates in the international market. | ||
| 283 | |||
| 284 | |||
| 285 | === Transmission === | ||
| 286 | |||
| 287 | The backbone transmission system in India is mainly through 765 kV, 400 kV and 220 kV AC networks, with the highest transmission voltage level being 800 kV (HVDC). Total transmission lines and substation capacity reached nearly 4.42 lakh Ckms and 10.25 lakh MVA respectively, reflecting an increase of about 16,750 Ckms and 57,575 MVA over the previous year. The National Electricity Plan (Volume II-Transmission) i.e. NEP-Trans, has been notified to review the development of transmission system during the 12th Plan Period, the current planning period 2017-22 and the subsequent period 2022-27. | ||
| 288 | |||
| 289 | With changing power generation mix on account of increase in renewables, the government is emphasizing on augmenting the transmission infrastructure to support demand growth. In order to expedite the development of transmission lines for solar parks under Green Corridor II (Under Green Corridor-I, Power Grid Corporation of India Limited is responsible for strengthening transmission networks and constructing inter-state transmission network for connecting renewable energy-rich states) and open-up private participation, which is still limited to 7%, the government has decided to award these projects to private players through TBCB. | ||
| 290 | |||
| 291 | |||
| 292 | === Distribution === | ||
| 293 | |||
| 294 | The distribution sector in India is going through a transformation. The issues of AT&C losses, payables to Gencos and overall effective management of the utility have been affecting the performance of the sector over the years. Discoms’ overdue to Gencos had crossed the ₹ 1 lakh crore mark in FY21 and stood at ₹ 67,417 crore as of February 2021, indicating the stress in the sector. The government has announced schemes and decisions towards addressing the issues in the sector with a liquidity injection of ₹ 90,000 crore (scaled up to ₹ 1.35 lakh crore) being announced under the COVID-19 relief package in May 2020. It also announced the push for the privatisation of Discoms of Union Territories (UT) and states. The Electricity Amendment Bill under discussion also highlights several measures planned, including delicensing the distribution business to increase competition in the sector and improve services for the customers. The Union Budget 2021-22 also saw a ₹3.05 trillion reform scheme for system improvement and smart metering in the distribution sector. Effective implementation of the proposed reforms would be key to ensuring the long term recovery and sustenance of the sector in the country. | ||
| 295 | |||
| 296 | |||
| 297 | === Power Trading === | ||
| 298 | |||
| 299 | Around 133 Billion Units (BUs) of electricity were traded in the short-term power market during FY21, as compared to a total of 137 BUs traded during FY20. Out of this, about 47% of the trading took place on power exchange platforms. The trading margins were under immense pressure due to the stiff competition amongst traders. The market is concentrated among ~~10 larger players, with the remaining traders operating in regional pockets largely for trading their own power. | ||
| 300 | |||
| 301 | At ₹ 2.819 per unit, the average clearing price for spot markets in FY21 decreased by 6% as compared to the previous fiscal. This decrease is largely attributable to lower demand, primarily because of the impact of COVID-19 in FY21 on the economy and the manufacturing sector, and higher merchant capacity available for power sale on exchange platforms. | ||
| 302 | |||
| 303 | |||
| 304 | |||
| 305 | [[image:TATAPOWER5.jpg]] | ||
| 306 | |||
| 307 | |||
| 308 | = Business Segments = | ||
| 309 | |||
| 310 | |||
| 311 | The company’s generation business operates under various business models across divisions in the domestic as well as international markets, with the PPA/Fixed Tariff model contributing to the largest share of the generation segment. | ||
| 312 | |||
| 313 | The Indian market continues to remain the primary focus of business for the company. Currently, the domestic market accounts for more than 90% of its generation capacity. | ||
| 314 | |||
| 315 | |||
| 316 | == Renewables Generation == | ||
| 317 | |||
| 318 | The company is a leading player in the renewable generation space, with presence across the value chain. With the focus of the government on clean energy transition, specifically solar-based generation, significant growth opportunities in renewables (both organic and inorganic) are expected to arise in the future. The company plans to increase its footprint by capitalising on those opportunities through value-accretive projects. It will also evaluate opportunities for growth through upcoming models of hybrid, round-the-clock (RTC) supply and renewables with storage. Opportunities in the captive space for renewable generation are also being evaluated by the company. With significant focus on ‘Make in India’, the company is also planning to expand its solar cells and modules manufacturing capacity in the coming year to support its expansion plan as well as the renewables Engineering, Procurement and Construction (EPC) Business for DCR tenders. The company had leveraged this opportunity in last year and had doubled its solar PV manufacturing capacity to 1,100 MW of cell and modules under Tata Power Solar Systems Limited (TPSSL). | ||
| 319 | |||
| 320 | |||
| 321 | == Thermal and Hydro Generation == | ||
| 322 | |||
| 323 | In line with its intent of achieving carbon neutrality before 2050, the company plans to limit its exposure to coal-based projects and does not intend to expand its existing portfolio. The company does not have any greenfield or brownfield expansion plans in the near term but would continue to maintain the existing thermal and hydro operations in a sustainable manner. The company will, however, be evaluating inorganic opportunities that might come up in hydro power generation assets. It is also looking at opportunities in Industrial Energy Limited (IEL) waste heat recovery (WHR) based portfolio through its Joint Venture (JV) with Tata Steel Limited. | ||
| 324 | |||
| 325 | |||
| 326 | == Transmission == | ||
| 327 | |||
| 328 | The company is significantly focusing on augmenting and upgrading transmission infrastructure in its Mumbai operations. In addition, it will also look for suitable opportunities including acquiring a few stressed assets through M&A. While expanding its footprint, the company will also look at models for keeping the expansions debt light. | ||
| 329 | |||
| 330 | |||
| 331 | == Distribution == | ||
| 332 | |||
| 333 | With a view to improve the financial health of the distribution sector in India, the government is actively looking at adopting the PPP route for state-run distribution utilities. The last fiscal year saw a significant progress towards this intent, with bids for many utilities of states and UTs under the PPP model. The company foresees a considerable number of opportunities in this space in the near future. During the last year, the company acquired 4 new distribution entities in Odisha state (CESU, WESCO, SOUTHCO and NESCO). With this, the company now distributes electricity in the entire state of Odisha. It will continue to pursue similar opportunities through the PPP route in other states and UTs to fortify its leadership position in this space. Moreover, it will continue to explore services business opportunities in both domestic and international markets. | ||
| 334 | |||
| 335 | |||
| 336 | == Consumer Businesses == | ||
| 337 | |||
| 338 | The company has major plans to scale up Consumer businesses such as rooftop solar, EV charging, solar pumps, microgrids, energy efficiency solutions and home automation. | ||
| 339 | |||
| 340 | It has collaborated with Original Equipment Manufacturers (OEMs) to roll out EV charging infrastructure and aims to expand its presence further in many cities pf India. The company has also developed a robust software platform for customers of EV charging and has released a mobilebased application (Tata Power EZCharge) towards the same effect. This would enable the company to offer value-added services to its customers. With the increase in EV adoption, the company plans to cover the segments of home, workplace and captive charging (including e-Bus charging) through different models and approaches. It is also actively evaluating opportunities in the electric 3-wheeler and 2-wheeler charging market. | ||
| 341 | |||
| 342 | In the space of rooftop solar, the company has presence in more than 180 districts of India and has rolled out differentiated value-added services with its offerings across segments (residential, commercial and Industrial, including corporates, owners, MSMEs, institutions and small commercial establishments). The company has recognised the opportunities arising in rooftop solar and is developing new offerings and models to enhance its adoption among consumers, including financing solutions, extending the EPC model, recurring revenue model and other value-added offerings. | ||
| 343 | |||
| 344 | The company has rolled out microgrids in rural India to provide innovative solutions for the under-served communities and expand the global microgrid footprint. It has installed around 161 microgrids till March 2021 and is evaluating different approaches and models for scaling up this business. | ||
| 345 | |||
| 346 | The company has identified eight business-wide Strategic Business Objectives (SBO) for a focused approach towards capitalising on the opportunities. You may refer to page number 21 of the Integrated Report for a detailed explanation of these SBOs along with goals and action plans to achieve these objectives. | ||
| 347 | |||
| 348 | |||
| 349 | |||
| 350 | [[image:TATAPOWER4.jpg]] | ||
| 351 | |||
| 352 | |||
| 353 | = Financial Highlights = | ||
| 354 | |||
| 355 | |||
| 356 | The Operating Revenue was at Rs 33,079 crore in FY21 compared to Rs 28,948 crore in FY20 on a consolidated basis. This is mainly due to acquisition of three Odisha Distribution Companies (Discoms) and execution of major solar Engineering, Procurement and Construction (EPC) projects during the year. Operating Profit was at Rs 7,605 crore which is marginally lower by 3% compared to previous year mainly due to favourable tariff order in Maithon Power Limited (MPL) in previous year, lower PLF from wind farms offset by lower losses in Coastal Gujarat Power Limited (CGPL) on account of lower coal prices and higher profit from Prayagraj acquisition. Finance costs decreased from Rs 4,494 crore to Rs 4,010 crore mainly due to repayment of loans from sale of non-core assets, issue of preferential capital and lower rate of interest. The profits from Joint Ventures (JV) and Associates were lower mainly due to lower profits from Indonesian coal mines due to lower coal prices. | ||
| 357 | |||
| 358 | The Consolidated Profit after tax in FY21 was at Rs 1,439 crore compared to Rs 1,316 crore in FY20 mainly due to lower losses in CGPL on account of lower coal prices, higher profit from Prayagraj acquisition and lower finance cost. | ||
| 359 | |||
| 360 | |||
| 361 | == Tata Power Q1FY22 results == | ||
| 362 | |||
| 363 | 2021-08-06; Tata Power, India's largest integrated power company, today announced its results for the quarter ended 30th June, 2021.{{footnote}}https://www.equitybulls.com/admin/news2006/news_det.asp?id=295521{{/footnote}} | ||
| 364 | |||
| 365 | |||
| 366 | Q1FY22 Consolidated PAT before Exceptional Items stood at ₹466 crore, up 74% from ₹268 crore in Q1FY-21, driven by consistent performance by all businesses, reduction in finance cost and higher execution of EPC projects | ||
| 367 | |||
| 368 | Q1FY22 Consolidated EBITDA stood at ₹ 2,365 crore, up 16% from ₹2,037 crore in Q1FY21 including Renewable EBITDA of ₹ 643 crore up 9% as compared to ₹ 588 crore in Q1FY21 mainly due to higher wind & solar power generation , all round better performances in Solar EPC, rooftop, solar pumps business and favorable tariff order for CGPL | ||
| 369 | |||
| 370 | |||
| 371 | === Performance Highlights: === | ||
| 372 | |||
| 373 | |||
| 374 | **Consolidated** | ||
| 375 | |||
| 376 | For the Quarter ended June 30th, 2021: | ||
| 377 | |||
| 378 | Tata Power's consolidated Q1 FY22 Revenue stood at ₹ 9,831 crore up 47 % as compared to ₹ 6,671 crore in Q1 FY21 mainly due to acquisition of Odisha Discoms and higher sales/execution in its solar EPC businesses | ||
| 379 | |||
| 380 | Q1 FY22 Consolidated PAT after exceptional items was up 74% at ₹ 466 crore compared to ₹ 268 crore in Q1 FY21 mainly due to higher wind & solar power generation, all round better performances in Solar EPC, rooftop, solar pumps business and favorable tariff order for CGPL. | ||
| 381 | |||
| 382 | |||
| 383 | **Standalone** | ||
| 384 | |||
| 385 | For the quarter ended Q1 FY22, Standalone Revenue stood at ₹ 1,788 crore up 22% against ₹ 1,469 crore in the Q1 FY21 due to higher generation | ||
| 386 | |||
| 387 | EBITDA stood at ₹ 937 crore up 44% against ₹ 649 crore in Q1 FY21 mainly due to higher dividend income from its subsidiaries | ||
| 388 | |||
| 389 | PAT after exceptional items stood at ₹ 198 crore up 340 % as compared to ₹ 45 crore in Q1 FY21 due to higher dividend income offset by MAT credit reversal due to change in tax regime | ||
| 390 | |||
| 391 | |||
| 392 | Commenting on the Company's performance, Dr. Praveer Sinha, CEO & Managing Director, Tata Power said, "All its existing generation, distribution and transmission business units have reported a robust performance despite the challenges presented by the ongoing pandemic. This can be attributed to the excellent performance of all its businesses and capacity additions. | ||
| 393 | |||
| 394 | |||
| 395 | The company aim to scale up its renewable portfolio from the current 4GW to 15GW by 2025 and to 25GW by 2030 thereby achieving 80% clean generation capacity, up from the current 31%. | ||
| 396 | |||
| 397 | |||
| 398 | The company will continue to expand and promote the mass adoption of rooftop solar & solar pumps, microgrids, home automation and focus on developing the EV charging infrastructure in the country. | ||
| 399 | |||
| 400 | |||
| 401 | Tata Power is happy to announce its re-entry into the development of greenfield Transmission Projects. The company's partnership with the country's leading T&D EPC player "Tata Projects" will make it a force to reckon with. This would further accelerate the momentum of "Power for All" initiative of the Government of India. | ||
| 402 | |||
| 403 | |||
| 404 | As part of its ESG focus, Tata Power obtained a score of 67 out of 100 in CRISIL's ESG ratings, the highest among all companies in the Indian Power Sector. | ||
| 405 | |||
| 406 | |||
| 407 | Tata Power is Future-Ready for a cleaner tomorrow and aim to capitalise on opportunities across hybrid renewable projects, floating solar and strengthen its partnerships for battery storage projects. | ||
| 408 | |||
| 409 | |||
| 410 | Despite the downside risks posed by COVID, the company remain optimistic and will continue to build a resilient tomorrow and advance its sustainability goals." | ||
| 411 | |||
| 412 | {{putFootnotes/}} | ||
| 413 | |||
| 414 | = Recent developments = | ||
| 415 | |||
| 416 | |||
| 417 | **Tata Power Renewable Energy commissions 100 MW solar project in Gujarat **{{footnote}}https://economictimes.indiatimes.com/industry/renewables/tata-power-renewable-energy-commissions-100-mw-solar-project-in-gujarat/articleshow/85296824.cms{{/footnote}} | ||
| 418 | |||
| 419 | |||
| 420 | Aug 13, 2021; ata Power Renewable Energy Ltd has commissioned a 100 MW solar project at Raghanesda Solar Park, Gujarat. The installation will reduce 2,00,000 tonnes of carbon emission every year. Raghanesda Solar Park, located in the Banaskantha district of Gujarat, is one of the biggest solar parks in the country, a statement said. | ||
| 421 | |||
| 422 | |||
| 423 | Tata Power Renewable Energy Ltd (TPREL), a wholly-owned subsidiary of Tata Power, has successfully commissioned the 100 MW Solar Power project at Raghanesda Solar Park, Gujarat, it added. | ||
| 424 | |||
| 425 | |||
| 426 | This project is another landmark for TPREL, as in the first year of its operation, the plant is expected to generate 255 million units, the statement noted. | ||
| 427 | |||
| 428 | |||
| 429 | The project was awarded by Gujarat Urja Vikas Nigam Ltd (GUVNL). With this addition of 100 MW, the total installed capacity of TPREL will be 2,797 MW with 1,865 MW of solar and 932 MW of wind. It has 1,234 MW of renewable projects under implementation. | ||
| 430 | |||
| 431 | |||
| 432 | Tata Power CEO and MD Praveer Sinha said, "Tata Power is proud to announce that TPREL has commissioned the 100MW project at one of the biggest solar parks in the country in Gujarat. Tata Power is steadfast in its conviction towards promoting the realisation of clean and green energy in the country through solar power generation". | ||
| 433 | |||
| 434 | |||
| 435 | Despite various challenges faced on account of COVID-19 by the industry, TPREL through Tata Power's EPC arm Tata Power Solar Systems Limited has completed the project within the timelines due to its excellent project execution experience and capabilities. | ||
| 436 | |||
| 437 | |||
| 438 | = References = | ||
| 439 | |||
| 440 | {{putFootnotes/}} |
