Tata Power Arm to Invest ₹1,200 Cr in 80 MW FDRE Project

Tata Power Renewable Energy Ltd (TPREL) is entering into a landmark power purchase agreement (PPA) with Tata Power Mumbai Distribution to establish an 80 MW Firm and Dispatchable Renewable Energy (FDRE) project at an approximate investment of Rs 1,200 crore.

The FDRE projects are the future stage of renewable generation because they integrate solar and wind energy with battery storage to facilitate a constant energy supply, even at peak hours. This combined solution enhances grid stability, minimizes carbon emissions, and supports the increasing demand in urban markets such as Mumbai for trustworthy green power.

As per the exchange filing of Tata Power, the project will be implemented in a period of 24 months. One of its greatest attractions is that it can produce approximately 315 million units (MUs) of electricity every year and also reduce more than 0.25 million tons of carbon dioxide released per year.

The company also stressed that a significant aspect of this initiative is the promise of 4-hour peak power supply, guaranteeing at least 90 per cent supply during peak demand hours to cater to the emerging energy demands of Tata Power Mumbai Distribution.

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The project will provide clean electricity to almost 8 lakh residential, commercial, and industrial customers in the city of Mumbai, once operational. It will also assist Tata Power Mumbai Distribution to meet the Renewable Purchase Obligation (RPO), which is required by the Regulatory Commission in the State.

Through this addition, TPREL has a renewable utility capacity of 11.3 GW, which includes 9.4 GW of PPA-based projects, 5.7 GW of which are currently under implementation. It has an operational capacity of 5.6 GW, 4.6 GW solar, and 1 GW wind.

This strategic initiative will make Tata Power one of the leaders in the shift towards renewable energy in India and will be in line with the national decarbonization agenda.