Tata Power Bets on Innovation to Slash Green Power Costs

Tata Power, a leading Indian energy company, sees significant cost reductions in energy storage and green power due to technological advancements. This focus comes amid rising demand for uninterrupted power.

While current lithium-ion technology and economies of scale offer some cost benefits, CEO Praveer Sinha acknowledges there won’t be enough. He emphasises the potential of new energy storage solutions using abundant materials like aluminium, zinc, manganese, and sodium. These next-generation batteries promise longer life spans at lower costs.

“Global and Indian research on batteries and cutting-edge technology can transform the stability of renewable power,” Sinha said, highlighting the importance of innovation.

Pumped Hydro: A Key Storage Solution

Tata Power prioritises pumped hydro storage, leveraging its experience with a 150-MW project. The company plans a massive 2,800 MW pumped hydro storage project in Maharashtra, with an investment exceeding Rs 13,000 crore.

“The Western Ghats’ natural topography offers immense potential for pumped storage projects,” Sinha remarked. Tata Power already operates three hydro power plants, including a 150 MW pumped storage facility.

These pumped storage projects integrate with renewable energy round-the-clock (RE-RTC) and future firm dispatchable renewable energy (FDRE) solutions. FDRE projects provide consistent power through a combination of renewable energy sources and storage.

Becoming a Leader in FDRE

Tata Power aspires to be a frontrunner in the FDRE space. Recent tenders from agencies like Solar Energy Corporation of India highlight the limitations of solely relying on solar or wind for continuous power supply.

Sinha acknowledges current FDRE projects rely solely on battery storage, but he anticipates cost reductions when pumped hydro is incorporated. Additionally, pumped hydro projects offer a lifespan of 30-40 years compared to 10-12 years for batteries, leading to a lower average cost over time.

The Future of Nuclear Power

Discussing private sector involvement in nuclear power, Sinha acknowledges the need for policy changes regarding liability, insurance, and fuel management before large-scale investments can occur. He suggests a public-private partnership model as an attractive solution for this sector.

Solar Manufacturing Update

Sinha concluded with an update on Tata Power’s manufacturing capabilities. The company’s 4 GW solar module manufacturing plant is operating at full capacity, and a similar capacity solar cell unit is expected to start production in August.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.