Tata Power targets Dutch solar market with new rooftop scheme

2024-05-13 green

Tata Power’s ‘Ghar Muft Bijli Yojana’ aims for a billion-dollar rooftop solar opportunity in the Netherlands, offering accessible installation for homes and businesses.

Expanding Horizons

Tata Power, an Indian multinational power company, has unveiled its ambitious plan to penetrate the Dutch rooftop solar market with its ‘Ghar Muft Bijli Yojana’. This initiative is tailor-made to reduce the barriers to entry for Dutch households and businesses looking to adopt solar energy solutions. The scheme is not only a strategic move for Tata Power but also aligns with the global shift towards sustainable energy practices. With the Netherlands’ favorable policies for renewable energy, Tata Power is poised to capitalize on a market brimming with potential.

Strategic Market Entry

The CEO of Tata Power, Praveer Sinha, underscored the opportunity presented by the central government’s rooftop solar subsidy scheme, which has the potential to generate a demand of 25-30 GW for solar modules. Tata Power is aiming to cater to 5-6 GW of this demand, translating into a business opportunity of $1-1.2 billion. With an estimated price of 20 cents per watt, the financial implications are significant. This scheme also supports the Dutch government’s objectives to increase the deployment of renewable energy sources, thus contributing to the reduction of greenhouse gas emissions.

Manufacturing Milestones

To support this venture, Tata Power has been ramping up its manufacturing capabilities. The company recently announced the commencement of its new solar cell and module manufacturing unit in Tamil Nadu, India, with a capacity to manufacture 4 GW of solar cells and modules each year. This expansion will boost Tata Power’s total installed solar module capacity to 4.9 GW, which includes the existing 600 MW annual capacity at its Bengaluru plant. These developments come at a time when Tata Power’s shares have almost doubled over the past year, reflecting investor confidence in the company’s growth trajectory.

The Financial Backdrop

The company’s foray into the Dutch market is backed by robust financial performance. Tata Power has reported a record net profit of INR 4,280 crore ($512.64 million) for the fiscal year ended March 31, 2024, marking its 18th consecutive quarter of profit growth. The annual revenue stood at INR 61,542 crore, with a strong contribution from its core businesses of generation, transmission, distribution, and renewables. The company’s market capitalization has crossed INR 1.4 lakh crore, demonstrating the financial strength that will support its international expansion plans.

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