Sustainable Strategy in Action
Tata Power follows a co-creation approach for strategy formulation through a bottom-up exercise guided by direction from our leadership team resulting in finalisation of strategy plans. Evaluation of our strategies is done annually to keep them updated to evolving market realities and stakeholder requirements. A well-planned and structured planning process along with a feedback loop helps in seamless implementation and course correction of the plans, leading to sustainable outcomes.
Generation
Transmission and Distribution
Renewables
New-age Energy Solutions
Strategic Business Objectives
Profitable scaling-up of Renewables, Transmission & Distribution, Services and Energy Solutions business
TARGETS
Increase share of clean and green portfolio in Company's portfolio to 70% by 2030
40 million customer base across distribution businesses by FY28
Being the leading EV charging network provider in India
PROGRESS
37%
Clean and green
12.9 million
Customer base in T&D
3,700+
Public EV charging points energised across 351 cities and towns
Focusing on sustainability, with an intent to attain carbon and water neutrality
TARGETS
Attain carbon net zero before 2045
Reduce specific fuel consumption by improving operational efficiency
Benchmark in waste management (gainful fly ashutilisation)
PROGRESS
595 MW
Clean and green capacity commissioned
21.5 MT
Coal consumption in FY23
94.6%
Current fly ash utilisation
Maintaining financial leverage at targeted levels
TARGETS
Strengthening of balance sheet by reducing debt to a more sustainable leve
Adopting debt-light models through innovative financial engineering and restructuring
PROGRESS
1.03
Net debt to equity ratio
1.52
Interest coverage ratio
2.66
Net debt to underlying EBITDA
73%
Capex financed through internal accruals
` 4,000 crore
Capital infusion by BlackRock and Mubadala for Renewables business
Leveraging digital platforms to drive customer-centric businesses
TARGETS
Establishing digital platforms for new businesses like EV charging, home automation and energy services
Leveraging data analytics to deliver customised solutions and value-added services (VAS) to customers
Generating insights from various customer data across businesses to improve offerings
PROGRESS
Investments in smart grid technologies such as smart meters, sensors, IOTs to make more intelligent and efficient network
Development and upgradation of energy storage and battery system specially to meet high energy demand due to EV charging solutions etc.
State-of-the-art customer feedback and analytics systems
Established policy for data privacy and security
C-SAT score above 90% for Mumbai & Delhi Discoms
Developing future energy products and solutions
TARGETS
Focusing on adapting and introducing new models for satisfying energy needs of the customers
Becoming the one-stopsolution provider for varied customer needs on energy through integrated offerings
PROGRESS
5.1+ lakh
Smart meters installed across Mumbai, Delhi and Odisha
- Smart energy meter based VAS for distribution customers
- Green power open access solutions
- Green term ahead market participation
- Floating solar
Established and well received offerings:
- Green Power (Mumbai distribution)
- Solar rooftop business offerings
- Microgrids
- ESCO solutions
Creating an engaged, agile, and future-ready workforce
TARGETS
Enhancing employee engagement, and targeting to be amongst the employers of choice
Building organisational capabilities to drive customercentricity
Creating next generation leaders
Focusing on diversity and inclusion
Nurture existing core competencies and build new competencies in the areas of innovation, technology and digital platform
Nurturing the culture for employee volunteering
PROGRESS
93%+
Retention rate
6.7+ lakh
Training hours in FY23
18,614 hours
Training for customerfacing personnel
73,265
Hours of Training for middle and senior management
303 hires
From business/engineering schools/institute
Tiered leadership development programmes – SLDP, AYLP and ELP
10%
Women in leadership positions
9%
Women in overall full-time workforce
- Digital academy creating digital literacy for fuelling transformation and growth
- Collaborations with academia
65+
Collaborations with bodies for new innovations, competency development etc.
1+ lakh
Hours of employee volunteering under 'Arpan'
Minimising coal cost under recovery in Mundra Plant
TARGETS
Optimising the coal cost under recovery through better coal sourcing, and optimal blending
Operating plant at optimum efficiency levels and achieving better operational parameters
PROGRESS
40%
Blend
Supplementary PPA is under discussion with full pass through of coal
Aligned to production levels enabled by regulatory norms
Setting performance yardsticks for existing businesses
TARGETS
Achieving benchmark performance in various operational parameters in thermal and hydro plants
Maximising incentives in regulated businesses
Operating RE portfolio at benchmark, and above design parameters to increase the yield
Aggregated Technical and Commercial (AT&C) loss reduction in Odisha Discoms
Improving asset performance by maximising digital initiatives
PROGRESS
Reduction in forced outage
Use of digital platforms and analytics to optimise plant performance
` 76 crore
Total incentives earned
Availability improvement and generation optimisation through technology interventions
9%
Reduction at overall level
New age initiatives such as customer service chatbot
Introducing industry 4.0 technology including Artificial Intelligence in operations
Strategy to Drive the Clusters
Our four key business clusters are propelled by the opportunities, strategy, and enablers aligned to the evolving market context, ensuring profitable and sustained growth.
Renewables
Renewables Cluster encompasses large-scale solar, wind, and hybrid projects, as well as the production of solar modules and cells, solar engineering, procurement and construction (EPC), and solar pumps. India has set a target of installing a total of 500 GW of solar and wind power by 2030, and to meet this goal, MNRE has targeted approximately 50 GW of bids to be issued annually for the next 5 years. The total installed renewable energy capacity of India has risen from 12% share in FY12 to 30% in FY23, after having crossed the 100 GW mark for the first time in FY22. Tata Power's Renewables business aims to capitalise on this significant demand, and therefore, is an important aspect of the Company's future plans.
Retain leadership
In utility scale EPC
Achieve best-in-class
Efficiency and yield through operational excellence, project execution, automation, and sustainability
Commission and operate 4 GW
Cell and module line by FY24 as greenfield expansion
Sustain best-in-class project execution
Through speed, cost optimisation, standardisation, and digitalisation
Building capabilities for the new opportunities in hybrid/round-the-clock/peak power bids
Establishing and ramping-up a plan for new 4 GW solar PV cell and module manufacturing plant
Improving margins on EPC projects
Focused efforts on next-gen photo-voltaic material and alternate battery chemistry
OUR ASPIRATIONS
>15 GW
(70% by 2030 and 100% before 2045)
Clean and green Capacity
>` 25,000 crore
Growth in revenue from EPC and manufacture verticals
New-age Energy Solutions
Our new-age energy solutions are crucial in promoting long-term business sustainability and facilitating our shift to a more eco-friendly, customer-centric energy provider. This cluster comprises our rooftop solar, electric vehicle (EV), and home-automation verticals.
Attain multi-fold growth in rooftop-solar and group captive portfolio
Leveraging brand, utilising channels, tapping profitable, and productive spaces for expanding portfolio
Partnering growth of EV ecosystem
Enabling EV infrastructure and enhancing digital customer experience
Build preference for EZ Home brand
Focus on expanding the home market to deliver value-led home automation products and achieve best-in-class customer service
Profitable growth while sustaining market leadership position in solar rooftop
Efforts to capture a sizable market share in the fastgrowing group captive market
Aggressive scale-up of EV charging and improve utilisation
3,700+
Public EV charging
points energised
24,185
Home automation
devices sold
1,650+ MW
of rooftop solar
EPC project executed
` 1,900+ crore
combined EPC order book
for rooftop solar and
group captive
OUR ASPIRATIONS
25,000+
EV charging points
30%
Market share in
rooftop solar
Transmission and Distribution
Our T&D cluster serves 12.9 million customers and has about 4,194 Ckm of transmission lines. In the long-term, the business expects to achieve its objectives under the SOAR strategy:
- Showcasing capability to transform both urban and rural geographies in distribution
- Observe zero fatality across all entities
- Achieving a multi-fold growth over baseline
- Reaching a customer base in excess of 40 million and Transmission capacity in excess of 10,000 Ckm
Operational and commercial efficiency improvement
Of Odisha Discoms at a faster pace
Operational efficiency
Enhancement through use of Total quality management (TQM)
Focus on innovation
To reduce capex requirement
Ensuring cost
Reflective tariffs across distribution business and amortisation of regulatory assets
Automation and digitalisation
Of processes and service delivery
Value added
Services to customers
Focused growth
In transmission business
Exploring opportunities under PPP/delicensing to expand customer base
Developing product suite and exploring opportunities for smart metering and other solutions
Tariff-based competitive bidding and M&A opportunities for transmission projects
Exploring smart grid and energy management services
| Distribution (Dist.) | Business model | Consumers in mn. |
|---|---|---|
Mumbai |
Dist. Licence |
0.8 |
Tata Power Delhi Distribution Limited |
Dist. Licence |
2.0 |
TP Central Odisha Distribution Limited |
Dist. Licence |
3.0 |
TP Southern Odisha Distribution Limited |
Dist. Licence |
2.3 |
TP Western Odisha Distribution Limited |
Dist. Licence |
2.6 |
TP Northern Odisha Distribution Limited |
Dist. Licence |
2.0 |
TP Ajmer Distribution Limited |
Dist. Franchisee |
0.2 |
Total |
12.9 |
Current T&D portfolio
| Transmission | Business model | Ckm |
|---|---|---|
Mumbai Transmission |
Regulated |
1,264 |
Powerlinks (JV) |
Regulated |
2,328 |
NRSS XXXVI Transmission (JV) |
Bid based |
2 |
South East UP Power Transmission (JV) |
Bid based |
600 |
Total |
4,194 |
AMBITION FOR THE NEXT 5 YEARS (T&D)
>40 million
Customers base
> 10,000 Ckt km
Transmission capacity
Generation
We manage conventional and hydro power assets across North, West, and East India, with a combined capacity of over 10,000 MW. Our primary focus is on the safe and competitive operation of assets, delivering affordable and reliable electricity to customers, while adapting to the energy transition.
Operational excellence
Achieving benchmark levels of operational efficiencies in parameters such as heat rate, auxiliary power consumption, and forced outage
Digitalisation
Using digitalisation and analytics to enhance efficiency and reliability
Flexibilisation
Being ready for flexible operation to enable grid stability
Sustainability
Reducing environmental footprint
Benchmarking sustainability performance by achieving carbon net zero, expanding clean and green capacity, implementing effective water and waste management, promoting flexibility, and adopting new technologies
Securing financial fitness by achieving long-term solution for Mundra, together with cost optimisation
Enhancing shareholder value through RoE improvement, operational excellence, and stakeholder engagement adherence
Ensuring compliance with MoEFCC mandates through the implementation of flue gas desulphurisation, nitrogen oxide (NOx) abatement projects, reduction in specific water consumption, afforestation, biodiversity initiatives, and ash utilisation
Enhancing people capabilities through targeted development plans and creating a future-ready workforce
