Tata Power, the power generation, transmission and distribution company of the Tata Group, is in active discussions with the group companies to provide green energy solutions to meet their energy demands. The company, which has decided to invest only in sustainable energy projects in the future, is also in discussions with several commercial and industrial customers to deliver tailor-made green energy solutions.
Speak with Business standard During a telephone conversation, Praveer Sinha, CEO and Managing Director, Tata Power, said that they will provide integrated green energy solutions to commercial and industrial customers. “There are a large number of companies that want to replace their existing energy supply with sustainable energy. We are in discussions with large companies, including multinationals. We are also in active discussions with companies within the Tata Group, including the new ones 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 charges,” Sinha said.
The Union Ministry of Power recently amended the ‘Group Captive’ rules, which state that a captive power user in a group captive structure must have a minimum 26 percent stake in the captive power plant. A captive power plant is usually set up by commercial and industrial users for their own electricity consumption, given their high demand and specific supply requirements. The amended rules paved the way for companies to set up group-owned factories through their subsidiaries. This helped them avoid the fees that state-owned electricity distribution companies charge to regular users.
He added that their expertise in the transmission and distribution segment would also be helpful in their offering. “We are involved in the entire supply chain. We deal with solar energy, batteries, hydroelectric power stations, transmission and distribution. We can not only supply green energy, but 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,” Sinha said in response to a question about how they will differentiate themselves as almost all power companies become suppliers to the commercial and industrial segments. He added that the company will also offer carbon credits on green energy sales to those companies that need them.
This article recently reported that among the commercial and industrial segment of electricity consumers, there is a surge towards green energy through open access and/or group captive, following the Centre’s change in rules. Each of India’s major conglomerates has adopted its own strategies to source green energy off the grid.
First print: May 12, 2024 | 5:51 PM IST