In a recent interview with Power Line, Dr Praveer Sinha, Chief Executive Officer and Managing Director, Tata Power Company Limited, shared his views on India’s energy transition and the move towards 24×7 clean power. He spoke about the role of storage, digital technologies and smart grids; the impact of recent GST reforms; and the turnaround of the Odisha discoms. He also outlined the key steps needed to accelerate renewable energy growth and strengthen domestic manufacturing. Edited excerpts…
What are the key opportunities and strengths in the power sector, and what are some of the trends that you find most exciting today?
The most defining trend in the power sector is the energy transition. Earlier, this meant simply adding solar and wind capacity. Today, it is about delivering round-the-clock green energy by integrating solar, wind, hydro and storage.
The focus has shifted from just adding capacity to ensuring that the energy delivered is reliable, efficient and aligned with customer requirements. At the same time, grid management is becoming smarter with the adoption of digital technologies such as smart grids, forecasting tools, data analytics and artificial intelligence. These solutions are enabling more accurate demand-supply balancing and enhancing system resilience. Overall, the clean energy sector is undergoing transformative disruption, a trend that is set to accelerate as research, innovation and the adoption of advanced technologies continue to grow.
What have been the key achievements in the power distribution segment over the past year, and what kind of reforms are needed to accelerate the transformation?
The distribution segment has made remarkable progress in recent years. We are seeing widespread adoption of smart meters, SCADA systems, automation and enterprise planning platforms. States are at different stages of digital transformation, but across India, monitoring and management of both urban and rural networks have improved significantly. Importantly, consumer awareness has grown, and with it, expectations around the quality and reliability of supply. This is pushing utilities to raise their service standards.
Another notable development is distributed generation. Rooftop solar adoption is rising, and more consumers are becoming prosumers, feeding surplus energy back into the grid. Schemes such as the PM Surya Ghar Yojana (PMSGY) are also enabling localised generation, reducing dependence on long-distance supply and improving reliability.
Financially, discoms are showing better performance, though accumulated losses remain a challenge. With more operational discipline, performance will improve further.
At Tata Power, a major milestone has been the turnaround of the Odisha discoms. This was our first major distribution venture outside Delhi, and it demonstrated how a public-private partnership model can transform power distribution. Odisha posed a unique challenge with its vast geography of 154,000 sq. km and mix of urban and rural consumers, requiring solutions very different from a city like Delhi.
Over the past few years, we have achieved tangible improvements in power availability, customer service, billing efficiency and consumer satisfaction. The discoms are now financially healthier, and there is a clear sense of positivity among all stakeholders – consumers, government authorities and employees alike. While we still have some distance to go, we have achieved 75-80 per cent of our goals. Odisha has been a transformative journey, and it is a replicable model for other states.
What is your view on the recent announcement on GST reforms for the renewable energy sector, and how will it impact the sector?
The recent GST changes are highly significant, both for renewables and coal. For coal, the GST rate has been increased from 5 per cent to 18 per cent. However, the earlier cess of Rs 400 per tonne has been removed. For the grades commonly used in Indian thermal power plants (G9 to G13), this results in an 8-20 per cent reduction in costs. Since coal costs are a pass-through, this will lower tariffs for consumers. While higher-grade coal (G1 to G6) will see a cost increase, the overall impact is positive.
For renewables, the GST rate has been reduced from 12 per cent to 5 per cent. This will lower production costs and reduce the cost at which solar panels are supplied – whether for large utility-scale projects, rooftop solar, or schemes such as PM Surya Ghar. Although input credit is not available under the new framework, the lower tax rate will benefit developers and consumers alike. This is a very positive step by the government that will accelerate renewable adoption.
What are the key success factors to unlock the full potential of the renewable energy sector? How can project execution and development be accelerated?
India’s transition to renewable energy is both ambitious and necessary, given the scale of its energy demand and the urgency of climate commitments. However, meeting these goals requires addressing multiple structural, technological and policy-related challenges. While significant progress has been made in expanding renewable capacity, certain bottlenecks continue to hinder the pace of deployment.
For large utility-scale renewable energy projects, one of the biggest challenges is land acquisition. Solar and wind projects, in particular, require extensive tracts of land, and securing these parcels can often be a slow and complex process. Beyond land, another significant hurdle lies in the evacuation of power. While certain regions of the country have far greater potential for solar and wind generation, the crucial question remains how to transport this power efficiently to the demand centres. This requires not only robust transmission infrastructure but also shorter development timelines. Transmission projects typically take much longer to complete than renewable installations, making it vital to anticipate future requirements and plan transmission capacity well in advance.
Technology is another critical dimension of the energy transition. Storage solutions are becoming increasingly important, yet it is clear that reliance on lithium-ion batteries alone will not suffice. More diverse and efficient storage technologies must be explored to ensure stability and reliability. Self-sufficiency in manufacturing is equally essential. Although India has achieved reasonable module manufacturing capacity and is scaling up cell production, there is still heavy dependence on other countries for wafers. This gap requires urgent attention, and strengthening the production-linked incentive (PLI) scheme to provide stronger support will be key. In the long term, non-tariff barriers may also become necessary, given the difficulty Indian firms face in competing directly with global manufacturers.
On the supply side, the outlook varies across components. Module production has already reached a comfortable domestic level, and cell manufacturing is expected to achieve self-sufficiency in the next two years.
For ingots and wafers, the timeline extends further, with three to four years likely required before meaningful domestic capacity is in place. Many players remain cautious, adopting a wait-and-watch approach, as they still need technology partners, access to financial support and tariff subventions. The upcoming PLI scheme under consideration by the Ministry of New and Renewable Energy (MNRE) is expected to address these concerns and provide the necessary boost.
Encouragingly, many of these issues are already under discussion with the MNRE. There is a strong likelihood that new policy initiatives will be introduced in the coming months to strengthen domestic manufacturing and accelerate renewable energy deployment. With the right support mechanisms and forward planning, India has the opportunity to address these bottlenecks and move decisively toward its clean energy goals.
What is your vision for the future of the power sector, and how is Tata Power positioning itself to support the transformation?
India is moving in the right direction, but the pace must be faster. We should transition from conventional to clean energy as quickly as possible. While 100 per cent clean energy may not be realistic in the near future, I believe India can achieve 80-90 per cent clean energy penetration in the coming decades through a balanced mix of solar, wind, storage, pumped hydro, and eventually nuclear.
At Tata Power, we are positioning ourselves at the forefront of this journey. We have already commenced two pumped storage projects (PSPs) in Maharashtra: a 1,000 MW project at Bhivpuri and another 1,800 MW project that will soon begin at Shirawata. In Bhutan, we are building a 600 MW hydro project, with another 1,125 MW project expected to start by mid-next year. Over the next four to five years, our goal is to add around 5,000 MW of clean energy capacity.
We are also expanding our presence in transmission, having secured six projects in the past three years, all under construction. Some are expected to be commissioned this year, the rest next year. In the battery energy storage (BESS) segment, our 10 MW BESS project in New Delhi was South Asia’s largest when commissioned in 2019, and we are now developing much larger integrated projects combining solar, wind, battery storage and pumped hydro.
By 2029, with our pumped hydro assets operational, Tata Power will be in a strong position to deliver clean, reliable, round-the-clock energy at scale. This is our vision, to play a pivotal role in India’s clean energy future.