It gives me immense pleasure to introduce to you our maiden Integrated Report 2019-20.
“Clean, cheap and abundant power is one of the basic ingredients for the economic progress of a city, state or country.” Almost a century before “sustainability” gained recognition as a subject, our Founder, Mr. Jamsetji Tata, gave this visionary message to the world. Tata Power is proudly committed to take that message as its guiding philosophy and support our country’s energy independence and sustainability. As a pioneer in technology adoption, our journey over a century has been a fascinating saga of revolutionary initiatives and responsible business practices.
In our quest to deliver sustainable energy, we have been expanding our operational footprint nationwide and globally, setting new benchmarks for operational efficiencies, investing in global resources and redefining paradigms. Our focus on building longlasting and trusted relationships with our customers, partners, employees and other stakeholders, and the legacy of caring for our communities, remains the bedrock of our long-term sustenance. We aim to energise consumer lifestyles by providing sustainable power.
As we strive to lead the reform process for sustainable power, we are also committed to safeguarding the environment for future generations and developing our business in a way that adds value to the local communities. We plan to set higher benchmarks in terms of development standards, and in the implementation of cutting-edge, eco-friendly technologies and processes of energy management.
Our commitment to sustainable supply of electric power has enabled us to be among the leaders in each sector of our value chain, including solar rooftop and value-added services.
We have continued our migration towards renewable energy projects and, today, 30% of our total generation (domestic and international) comes from clean and green sources. We are poised to grow multifold on the back of latest business integrated solutions, focusing on mobility and lifestyle and powering emerging technologies for smart customers.
This year, we have taken significant strides towards achieving our key goals and targets. We have been awarded the Letter of Intent by Odisha Electricity Regulatory Commission and selected as the successful bidder to own the licence for the distribution and retail supply of electricity in Odisha’s five circles that constitute the Central Electricity Supply Utility of Odisha.
National Thermal Power Corporation Limited (NTPC) has awarded us a 250 MW solar project under the Central Public Sector Undertaking (CPSU) scheme of ` 1,505 crore. It is our biggest single order from a third party so far and consolidates our commitment to the “Make in India” mission. It has also taken Tata Power Solar’s order book to around 1,500 MW with value of approximately ` 7,500 crore. This underscores our competitive and quality offering as a leading Solar EPC player in the country, achieving leadership position among utility scale, rooftop solar and solar pump business.
Renascent Power Ventures Private Limited (Renascent), a 100% subsidiary of Resurgent Power Ventures Pte. Limited (Resurgent), completed the acquisition of 75.01% Equity ownership in Prayagraj Power Generation Company Limited (PPGCL). This has augmented our generation capacity by 1,980 MW. However, this is likely to be amongst the last investments in coal-based power plants as we turn our sights completely towards cleaner energy.
It is noteworthy that reviving the existing thermal power plants and augmenting their efficiency marginally reduces the carbon footprint of existing capacities.
With our extensive expertise and deep knowledge of the sector, Tata Power aims to transform the Indian power sector, particularly in our Distribution service. A variety of our service offerings has culminated into 26.2 lakh satisfied customers.
We have set up a new subsidiary – TP Renewable Microgrid Limited (TPRML), in partnership with the Rockefeller Foundation, to become the world’s largest microgrid developer and operator. The aim is to provide access to affordable, clean and reliable power supply and also enable rural entrepreneurs to generate economic wealth and help eradicate energy poverty. TPRML has test charged 18 microgrids so far, while 25 more microgrids are in an advanced stage of project execution. Further, a pipeline of 30 projects has been created in Uttar Pradesh and Bihar.
Our cash flow from operations, on a consolidated basis, has increased by 61% this financial year from FY19 due to prudent working capital management. There has been an increase in operating profit by 13% due to optimisation of operating costs across Tata Power and its subsidiaries. This has resulted in higher realisation of cash in hand as on 31st March 2020.
We are proud to be associated with Jaguar Land Rover India Limited (JLR India) for end-to-end charging solutions for its range of electrified vehicles to be launched in India. As India’s leading integrated player in the EV charging space, we will provide JLR India’s EV customers with easy, universal and seamless charging experience at their homes, offices and public places. This partnership is also an endorsement of their faith in us and our ability to deal with the electrified range of vehicles that JLR will bring in India.
Club Enerji, our nationwide resource and energy conservation initiative with a strategic focus on nation-building, sensitised over 26.4 million people while saving more than 31.8 million units of energy across seven cities – New Delhi, Mumbai, Pune, Ahmedabad, Bengaluru, Kolkata and Ajmer since 2007.
The initiative also reached out to its digital audiences through its website, social media handles and an online module themed “Save water”. During the current financial year, the Company initiated four fresh campaigns, including 'I have the Power', 'I Live Simply', '#SwitchOff2SwitchOn' and 'I Can' to further the success of Club Enerji among the youth of India. These campaigns were also promoted on popular social media platforms like Facebook, Instagram etc., and managed to reach a large number of young audiences. The Club now has created 3.6 lakh Energy Champions along with 4.1 lakh Energy Ambassadors across the country since its inception, reaching 533 schools in the process.
We believe that inculcating the value of sustainability and a broad understanding of our dependencies on scarce resources must start early in our children’s lives. Tata Power has been conferred the prestigious “Edison Award” for its “Club Enerji #Switchoff2SwitchOn” campaign under Social Innovation category and Social Energy Solutions subcategory. Apart from India, Tata Power Club Enerji also has followers overseas in countries such as France, Germany, the United States, Ireland, Philippines, Bangladesh, United Arab Emirates, South Africa and Nepal. The Club is a case study in IIM-Ahmedabad and was showcased on the prestigious TEDx platform.
Our efforts have been recognised by the industry, with the Business Insider ranking us at the top of India’s ‘Most Respected Companies’. As part of our plans to maintain leadership in renewable energy, our rooftop solar solutions are now available in 26 states and 7 Union territories, with our solar arm — Tata Power Solar Systems Limited — having an installed capacity of 421 MW under EPC contracts for customers as well as operating assets under PPA. Rooftop solar is an ideal solution for consumers who are looking for a sustainable source of clean energy that has the in-built capacity to pay for itself in the long run.
Furthermore, with the cost of diesel and electricity rising, solar powered water pumps can emerge as the perfect alternative for farmers as these have a low maintenance cost and a long product life. When combined with new distribution solutions like microgrid, solar rooftop and solar water pumps will play a big role in improving the energy access across the country, in both urban and rural areas. All these initiatives are poised to take our share of ‘clean and green’ energy from 30% in 2020 to around 50%-60% in 2025.
One of the biggest trials facing humanity today is that of fighting climate change. Mitigating the impacts of global warming requires reconciliation of economic growth with the decrease in GHG emissions. This will only be possible through the transition to a decarbonised energy model. To contribute our share in overcoming this challenge, we are continuously exploring green technology and its applicability for our customers. We are confident of being #FutureReady and continue lighting up lives of our consumers!
CEO & MD, Tata Power