Tata Power's Ambitious Clean Energy Expansion
Tata Power is making substantial strides in India's clean energy sector, with plans to dramatically scale up its battery energy storage systems (BESS) and bolster domestic solar manufacturing. The company is set to begin work on a massive 10 GW ingot and wafer manufacturing plant in Odisha later this month, a critical step towards reducing India's reliance on imported solar components.
Addressing Energy Curtailment with Battery Storage
The push into BESS projects comes as renewable energy curtailment continues to be a challenge due to insufficient evacuation infrastructure. Praveer Sinha, Tata Power CEO, highlighted that curtailment stood at 8% in Q2FY27, underscoring the urgent need for more BESS installations. Tata Power plans to bid aggressively for upcoming large battery storage projects.
The company has already demonstrated its capabilities in this area. In July 2025, Tata Power signed its first stand-alone Battery Energy Storage purchase agreement with NHPC for the Kerala State Electricity Board. This project involves installing a 30 MW/120 MWh BESS at the Areacode substation, designed to provide four hours of backup power. This follows the successful delivery of India's largest solar-plus-BESS project in Chhattisgarh in 2024, a ₹945 crore endeavor for the Solar Energy Corporation of India, featuring a 100MW solar plant and a 120MWh BESS.
Furthermore, Tata Power has approved an investment of ₹11,871 crore in an 1,800 MW pumped storage project (PSP) at Shirwata in Maharashtra, signaling a broad commitment to energy storage solutions.
Strengthening Domestic Solar Manufacturing in Odisha
A cornerstone of Tata Power's strategy is the backward integration of its solar manufacturing business. The company has approved a ₹6,675 crore investment for a 10 GW ingot and wafer manufacturing plant in Gopalpur, Odisha. Construction is slated to begin this month, with the first phase expected to commence operations in calendar year 2028.
This initiative is crucial for India, which currently relies heavily on imports, particularly from China, for ingots and wafers—essential components in solar cell production. Domestic manufacturing of these key elements will significantly enhance India's energy independence and supply chain resilience.
Financial Performance and Future Outlook
Tata Power's renewable business is a key growth driver. The company aims for clean and green capacity to account for at least 70% of its overall capacity by 2030. Its current renewable portfolio includes 5.6 GW of solar and 1.3 GW of hydro capacity.
For the second quarter of FY27, Tata Power reported a consolidated net profit increase of 48.6% year-on-year to ₹1,366 crore. Revenue also grew by 27.1% to ₹19,636 crore. The growth was attributed to strong performance across its Mundra operations, renewables business, Mumbai transmission business, and Odisha distribution companies. Revenue from the renewable business alone rose 3.7% year-on-year to ₹3,746 crore, while solar manufacturing revenue surged 23% to ₹2,180 crore.
These investments and strategic moves position Tata Power at the forefront of India's transition to a sustainable energy future, emphasizing both generation and critical infrastructure components.