As one of the major players in renewable energy in the country, Tata Power has recently asked for bids to source over 3 Gigawatts of wind turbine capacity. The tenders will form part of a wider strategy for the company in strengthening its hybrid wind-solar projects across the nation. The contracts entailing more than ₹21,000 crores will rank as the largest in the country from wind turbine tenders.
The project resonates perfectly with Tata Power’s ambitious expansion in its renewable energy footprint, which, in turn could increase the total capacity it requires to as high as 5 GW over the next five years. Such expansion could make the overall value of the contracts bracketed at a staggering ₹35,000 crore or around $4.2 billion. This approach towards procurement is well aligned with Tata Power’s commitment to spend some $9 billion in the next six years on renewable energy capacity, thereby further consolidating its place in India’s transition towards clean energy.
Industry reports estimate the going price for setting up 1 MW of wind energy to now run at a stiff ₹7 crore, meaning high cost implications for this project. Among the major OEMs said to be in the fray are Siemens Gamesa, Senvion India, Envision Energy, and Suzlon Energy.
Tata Power aims for a development rate of over 1 GW in wind capacity annually. At present, it is looking for long-term supply agreements with wind-turbine manufacturers. This will help the group companies under Tata Power, particularly Tata Steel, with the energy requirement needed for their business operations.
In the current financial year, Tata Power has planned capital expenditure of ₹20,000 crore, half of which it will use to support renewable energy projects. The balance would go into increasing infra to help in distribution, transmission, and its existing coal-based plants.
Tata Power would also be a part of Tata Group’s pledge to generate 100% clean power by fiscal 2045. The company already boasts of renewable energy capacity of 10.5 GW with an operating capacity of 4.8 GW, and the projects in the pipeline aim to further increase its capacity. In the case of Tata Power, more than doubling by 2030 from the current capacity of 20 GW is planned by it, again a mark of dominance in the industry.
India’s government has set an ambitious target increasing wind power capacity up to 25 GW by 2028 that reflects a renewed impetus in terms of wind energy, and growing investments in solar projects. The recent conclusion of the Tata Power group’s bidding initiative marks a strong response to this governmental objective by propelling growth in the renewable energy market.
