Mumbai: Tata Power Renewable Energy Ltd (TPREL), a subsidiary of The Tata Power Company Ltd, has entered into a Power Purchase Agreement (PPA) with Tata Power Mumbai Distribution (TPC-D) to supply 80 MW of Firm and Dispatchable Renewable Energy (FDRE). Under the PPA, TPREL will set up an integrated renewable energy system combining solar, wind, and battery storage.
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The project is expected to take 24 months to commission and will generate an estimated 315 million units (MUs) of electricity annually, with the aim of meeting peak-hour demand reliably.
Once operational, this project is projected to reduce carbon dioxide emissions by over 0.25 million tonnes per year. It also strengthens Tata Power Mumbai’s ability to meet its Renewable Purchase Obligation (RPO).
The contract’s capital expenditure is estimated at approximately Rs 1,200 crore. Because TPREL is a wholly owned subsidiary, the PPA qualifies as a related-party transaction. The company has stated that it is being executed at arm’s length.
In a statement, Tata Power also noted that TPREL’s total renewable utility capacity stands at 11.3 GW (PPA capacity 9.4 GW), with 5.7 GW under various stages of implementation, and an existing operational capacity of 5.6 GW (comprising 4.6 GW solar and 1 GW wind).
The deal reflects an increasing industry focus on “firm and dispatchable” renewable power — i.e. renewables backed by storage or complementary generation to ensure supply during peak hours or intermittency. For an urban distribution network like Mumbai’s, that reliability is crucial.
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For Tata Power, the move adds to its green energy credentials and supports its target of net zero by 2045. As per the filing, the clean energy generated will feed directly into Tata Power’s Mumbai distribution network, potentially benefiting some 800,000 customers across sectors.