Chandrasekaran said that as one of India’s biggest integrated power players, the group company Tata Power was well-equipped to play a leadership role in the country’s transition to clean energy sources.
In times of crisis, true leaders rise to the occasion. Natarajan Chandrasekaran, Chairman of Tata Sons, did just that by making India’s great energy transition opportunity in solar, wind, storage and nuclear energy the rallying point for the $165 billion salt-to-software conglomerate last Friday.
The timing was particularly poignant, with the Tata group still reeling from the unexpected setback of the Air India Flight AI171 crash on 12 June.
After paying tributes to the victims of the air disaster and former chairman Ratan Tata, Chandrasekaran laid out a bold roadmap—comprising solar, wind, hybrid, energy storage and nuclear components—for Tata Power’s transformation at the company’s 106th AGM.
His emotions were best summed up in the words: “It is a very exciting time to be in this sector, and your company [Tata Power] is one of India’s largest integrated power companies. And it is ideally positioned to lead the country’s energy transition.”
The government think tank NITI Aayog and other advisories estimate India’s shift to green energy sources at $10 trillion. According to Rocky Mountain Institute, the country’s energy demand is expected to reach three times the current levels by 2050. A successful transition to clean energy would ensure India saves more in carbon emissions than Europe and North America combined.
Moreover, the ongoing evolution of India’s energy sector firms, such as Tata Power, is transforming them into innovation-led companies with strong technology backbones.
Unprecedented Rise in Energy Demand
Addressing the growth in the Indian economy, climate change, supply chain disruptions and the emergence of technologies such as artificial intelligence (AI) and electric vehicles (EVs), Chandrasekaran said those macro trends, led by emerging economies like India—the world’s third-largest electricity consumer—resulted in energy demand growing faster than the average rate of growth in the past decade.
“A shift to electrification was one of the mega trends of 2024. Oil’s share of the total energy demand fell below 30 per cent for the first time. Coal demand grew by 1 per cent—half the rate of increase as in 2023.”
He pointed out that India met only 42 per cent of the demand growth from coal generation in FY2025. As global installed capacity increased to 700 GW, the country’s total clean and green energy capacity crossed the 200 GW mark, accounting for 46 per cent of the total installed capacity.
He noted the country had overtaken Germany to become the world’s third-largest generator of electricity from solar and wind, with the former being the fastest-growing renewable energy technology.
“Solar generation is expected to rise by over 135 per cent in the next two years. This is expected to be bolstered by wind and hydropower generation, growing at a CAGR of 36 per cent and 18 per cent in the very same two-year period.”
The increase in renewable capacity has led to complex auctions dominating India’s clean power auctions, making up more than 60 per cent of the total volume in 2024, with India’s storage market also gaining momentum, he said.
Complex auctions include hybrid projects of solar, wind and energy storage, contracts requiring generators to match monthly electricity demand on an hourly basis, and peak power projects for delivering electricity during high-demand periods.
Performance-Backed Growth
Noting the excellent performance reported by Tata Power in FY2025, Chandrasekaran said its generation portfolio, including pipeline capacity, had crossed the 25 GW mark, with 65 per cent of this capacity contributed by clean energy.
He also spoke about the company’s ongoing work in the verticals of cross-border energy projects, storage and manufacturing of renewable energy components.
He especially mentioned Tata Power’s strategic partnerships for 5 GW of cross-border renewable energy and hydropower projects with Bhutan, the 1,000 MW Bhivpuri pump storage project in Maharashtra, and the successful commissioning and stabilisation of the 4.3 GW solar cell and module manufacturing plant in Tirunelveli, Tamil Nadu.
The period also saw Tata Power entrenching itself in the residential rooftop solar and EV charging solutions segments to become a direct consumer-facing player.
“Tata Power is the number one rooftop solar company in the country. The company’s ‘Ghar Ghar Solar’ campaign is aligned with the PM’s Surya Ghar Yojana, and your company is well set to meet its ambition of solarising India.”
Launched in 2024, the heavily subsidised PM Surya Ghar Muft Bijli Yojana (PMSGMBY) enables low-income households to generate up to 300 units of electricity by installing a solar power plant. By March, 1 million rooftop solar installations had been provided across India. The scheme aims to cover 10 million households by March 2027.
Future Forward
Chandrasekaran said Tata Power today was similarly managing one of the largest EV charging networks in the country to facilitate the shift from traditional fuel vehicles to EVs.
He said that in FY2025, the company maintained 99.9 per cent transmission availability while also securing transmission projects worth more than ₹48 billion. This brought its total portfolio to over 7,000 circuit kilometres (ckm), including a pipeline capacity of more than 2,400 ckm. The company was successfully serving 12.8 million customers across seven distribution companies (DISCOMs) in Delhi, Mumbai, Ajmer and the entire state of Odisha.
The company reported a profit after tax of ₹51.97 billion, crossing the ₹50 billion milestone, a 26 per cent year-on-year growth. Its earnings before interest, tax, depreciation and amortisation (EBITDA) exceeded ₹150 billion for the first time, reaching ₹152.61 billion. Revenue grew 5 per cent year-on-year to ₹645.02 billion, driven by a robust performance in the rooftop business and improved billing efficiency and collection in the distribution business.
Chandrasekaran emphasised the company’s transition from being a pure-play solar and wind player to becoming a force in the hybrid renewable energy market.
“By offering customisable, scalable and end-to-end clean and green energy solutions, Tata Power is enabling net-zero journeys and providing round-the-clock sustainable power for industries and consumers wherever they are.”
Most importantly, he said the company was also ready for the anticipated opening up of the nuclear sector to private sector participation.
The Union Budget 2025 has recommended regulatory changes to allow investments by private and foreign players and enable public-private partnerships (PPPs) in reactor development. The deployment of at least five small modular reactors is also proposed by 2033.
Chandrasekaran said the motto given by the group’s founder, Jamsetji Tata, on clean, cheap and abundant power being the cornerstone of development, would continue to guide the company’s future expansion.
-Manish Pant