Tata Power Signs PPA With Tata Motors For 131 MW Hybrid Energy Project

Synopsis:

Tata Power Renewable Energy has signed a Power Purchase Agreement with Tata Motors to develop a 131 MW wind-solar hybrid project. It will generate 300 million units annually and cut over 2 lakh tonnes of CO₂ emissions each year.


Tata Power Renewable Energy Limited (TPREL), a wholly owned subsidiary of Tata Power, has signed a Power Purchase Agreement (PPA) with Tata Motors to co-develop a 131 MW wind-solar hybrid energy project. This strategic clean energy initiative is expected to generate approximately 300 million units of renewable electricity per year. The project will help offset more than 2 lakh tonnes of carbon dioxide annually and will exclusively cater to Tata Motors’ six production facilities across Maharashtra and Gujarat.

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Tata Power Co Ltd

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Key Takeaways

  • Tata Power Renewable Energy to install a 131 MW wind-solar hybrid project

  • Project to supply green electricity to six Tata Motors manufacturing plants

  • Estimated 300 million units of annual power generation

  • Expected reduction of over 2 lakh tonnes of CO₂ emissions each year

  • Supports Tata Motors’ RE-100 and net-zero targets ahead of 2030

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Green Power For Sustainable Manufacturing

The wind-solar hybrid energy project will support Tata Motors’ commercial and passenger vehicle manufacturing units. The clean energy generated will enable a steady supply of cost-effective electricity, reducing dependence on fossil fuels. The initiative contributes significantly towards Tata Motors’ RE-100 commitment and helps fast-track the company’s net-zero goals.

This development further strengthens Tata Power Renewable Energy’s leadership in hybrid energy solutions, combining wind and solar capabilities to maximise energy efficiency. It also marks a major shift in the automotive manufacturing landscape towards climate-aligned operations.

Project Highlights

Parameter

Details

Capacity

131 MW (Wind-Solar Hybrid)

Annual Power Output

300 million units

CO₂ Emissions Offset

Over 2 lakh tonnes/year

Beneficiary

6 Tata Motors facilities in Maharashtra, Gujarat

Implementation Model

Long-term Power Purchase Agreement (PPA)

Market Sentiment And Share Impact

The project announcement is likely to reflect positively on Tata Motors share price, indicating strong investor confidence in its sustainability initiatives. The growing focus on green energy integration could further stabilise operational costs and promote long-term environmental goals.

Tata Motors share price has remained resilient in recent months, and this forward-looking energy collaboration may help improve sentiment across institutional investors. Increased use of renewable energy is also expected to contribute to higher ESG ratings, potentially boosting Tata Motors share price in upcoming quarters.

The collaboration between Tata Motors and Tata Power Renewable Energy sets a benchmark in India's clean energy journey. It integrates long-term climate goals with manufacturing excellence and highlights a proactive shift in corporate energy strategies across the automotive sector.

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This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.

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Published Date : 22 Apr 2025

Disclaimer :

Investments in the securities market are subject to market risk, read all related documents carefully before investing. This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.


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Content Partner - Dalal Street Investment Journal Wealth Advisory Private Limited



This article is for educational purposes only and should not be considered investment advice. Market investments are subject to risks. DSIJ Wealth Advisory Private Limited is a SEBI-registered Research Analyst (Reg. No: INH000006396) and Investment Adviser (Reg. No: INA000001142). Please consult your financial adviser before investing. 

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