Tata Motors and Tata Power launch 131 MW green power deal to slash emissions and accelerate RE100 goals

How is Tata Power Renewable expanding its industrial clean energy footprint?

Tata Power Renewable Energy Limited (TPREL), the green energy subsidiary of Tata Power, has signed a landmark Power Purchase Agreement (PPA) with Tata Motors to co-develop a 131 megawatt (MW) wind-solar hybrid project under the group captive model. This project marks a major stride in India’s transition to sustainable industrial energy and strengthens Tata Group’s alignment with global decarbonisation goals.

Designed to generate around 300 million units of clean electricity annually, this initiative will supply power to Tata Motors’ six manufacturing plants in Maharashtra and Gujarat. It is expected to offset more than 200,000 tonnes of carbon dioxide each year. By integrating solar and wind power into a hybrid system, the project ensures round-the-clock availability of renewable energy while reducing dependency on grid fluctuations.

This investment helps Tata Motors progress toward its RE-100 target of 100% renewable electricity and further supports its broader climate ambition of becoming net-zero across operations. TPREL’s integrated model also supports industrial consumers in achieving cost-efficient, reliable clean energy adoption.

How does this deal advance Tata Motors’ RE100 and net-zero strategy?

Tata Motors, one of India’s largest automakers, is fast-tracking its renewable energy adoption through this co-invested, long-term PPA with TPREL. This deal is aligned with the company’s RE100 commitment to source all its electricity needs from renewables by 2030. It also forms a critical part of Tata Motors’ roadmap to decarbonise its manufacturing processes and reduce overall operational emissions.

The hybrid project will provide Tata Motors with firm, uninterrupted access to clean energy, supporting the continuous operations of its manufacturing units in Pune, Sanand, Pantnagar, Dharwad, and Jamshedpur. This model addresses the challenge of renewable intermittency and provides a consistent, grid-independent green power source.

Furthermore, the company’s sustainability goals include reducing Scope 1 and Scope 2 emissions and adopting a circular manufacturing approach. The integration of clean power through this partnership contributes directly to meeting these objectives.

What makes this hybrid wind-solar solution strategically important?

The 131 MW wind-solar hybrid setup combines the strengths of solar photovoltaic and wind energy systems to ensure higher capacity utilisation and 24/7 green power delivery. This design also opens up new opportunities for battery storage integration and floating solar applications in the future.

The hybrid model is especially significant for energy-intensive sectors like automotive, steel, and chemicals, which require reliable power throughout the day. Tata Power Renewable’s capability to deliver integrated green energy—combining solar, wind, and storage—at scale differentiates it from traditional solar or wind suppliers.

The project is strategically located in regions with strong solar irradiance and wind consistency, enabling year-round performance optimisation. With this deal, TPREL reaffirms its leadership in scalable green energy solutions for industrial users in India.

How is TPREL strengthening its group captive portfolio?

This latest agreement pushes TPREL’s total group captive renewable capacity beyond 1.5 gigawatts (GW). Currently, the company operates about 478 MW under its group captive model. Another 1.1 GW of capacity is at various stages of implementation and expected to go live in the next 6 to 24 months.

TPREL has become a preferred green energy partner for several Tata Group entities and leading commercial and industrial (C&I) players across sectors including automotive, hospitality, communications, steel, and real estate. Notable partnerships include Tata Steel, Tata Communications, and Indian Hotels Company Limited (IHCL), among others.

The group captive model offers clients long-term energy cost predictability, improved ESG scores, and decarbonisation benefits, all without requiring full ownership of the generation asset. These advantages are driving growing demand across sectors, and TPREL is scaling up to meet this need.

How are stock market investors reacting to Tata Power’s and Tata Motors’ clean energy initiatives?

As of April 21, 2025, investor sentiment toward Tata Power has been positive, supported by the company’s consistent earnings performance and rapid clean energy expansion. Tata Power shares closed at ₹390.85, up 2.4% from the previous session. The company has reported its 21st straight quarter of profit growth, reflecting strong fundamentals and operational efficiency.

Institutional activity shows resilience. Foreign Institutional Investors (FIIs) held 9.4% of Tata Power’s equity in March 2025, slightly down from 9.5% in December 2024, while Domestic Institutional Investors (DIIs) increased their stake from 16.1% to 16.2% during the same period.

For Tata Motors, stock volatility has been more pronounced, largely influenced by global exposure through Jaguar Land Rover (JLR). The stock closed at ₹631.60 on April 21, marking a slight intraday dip of 0.34%. However, the company gained over 5.5% during the week. Earlier in April, JLR’s decision to pause exports to the United States in response to new tariffs led to a sharp correction in Tata Motors’ stock.

FIIs reduced their holdings in Tata Motors from 18.7% to 17.8% between December 2024 and March 2025, suggesting a more cautious outlook. However, DIIs marginally increased their stake, reflecting domestic confidence in Tata Motors’ long-term EV and sustainability strategy.

What does this project mean for India’s industrial clean energy transition?

The collaboration between Tata Power Renewable and Tata Motors signals a broader shift in how industrial power demand is being met in India. It reflects growing maturity in hybrid, round-the-clock green energy solutions designed specifically for large-scale manufacturing and commercial operations.

As India targets 500 GW of non-fossil energy capacity by 2030, private sector initiatives like this provide the scalability and innovation required to meet climate goals. Hybrid models, group captive arrangements, and digital energy management platforms are expected to drive the next wave of clean energy adoption.

TPREL’s experience in project execution, regulatory compliance, and energy integration positions it as a strategic enabler for India’s green industrial transformation. With ESG reporting becoming mandatory for large companies, and investor preference tilting towards sustainable businesses, such partnerships are expected to attract increasing capital and regulatory support.