In a significant move towards sustainable manufacturing and green energy transition, Tata Power Renewable Energy Limited (TPREL), a wholly owned subsidiary of Tata Power, has signed a landmark Power Purchase Agreement (PPA) with Tata Motors Limited, one of India’s largest automobile manufacturers. This strategic alliance will lead to the development of a 131 MW wind-solar hybrid project, aimed at powering Tata Motors’ key manufacturing units in Maharashtra and Gujarat with clean, renewable electricity.

Key Objectives of the Collaboration

The 131 MW hybrid project is expected to generate nearly 300 million units (MUs) of renewable electricity per year. This will help offset more than 2 lakh tons of CO₂ emissions annually, equivalent to removing thousands of cars off the road. The project will power Tata Motors’ six major production facilities, supporting both passenger and commercial vehicle manufacturing operations.

This partnership is designed to facilitate a reliable and cost-effective Round-The-Clock (RTC) power supply to Tata Motors. By leveraging both wind and solar technologies, TPREL ensures energy security and cost optimization through its hybrid clean energy solutions.

Accelerating RE100 and Net Zero Targets

Tata Motors is a participant in the RE100 initiative, which includes global businesses committed to using 100% renewable electricity. The automaker is progressing towards its RE100 target ahead of the 2030 deadline, and this project plays a pivotal role in fulfilling that commitment.

The initiative is also in line with Tata Motors' broader ambition to achieve net-zero emissions across its value chain and production ecosystem. Sustainable manufacturing practices are becoming a core component of Tata Motors’ operations, and this collaboration marks a milestone in its environmental responsibility roadmap.

TPREL’s Growing Leadership in Hybrid Energy

TPREL’s competitive advantage lies in its ability to provide integrated renewable energy solutions through a combination of solar, wind, floating solar, and battery storage systems. The company has recently surpassed 1.5 GW of group captive project capacity, establishing itself as a leading clean energy partner for industrial clients across India.

The hybrid model ensures uninterrupted green power supply and helps companies like Tata Motors meet their Environmental, Social, and Governance (ESG) and RE100 goals, all while keeping energy costs in check.

Extensive Group Captive Portfolio

TPREL has become a preferred partner for several Tata Group companies, including Tata Steel, Tata Communications, IHCL (Indian Hotels Company Limited), and now Tata Motors. These partnerships are centered around the group captive model, where clients co-invest in renewable energy projects and receive electricity at preferential rates.

Currently, TPREL operates around 478 MW of renewable energy capacity under this model. With another 1.1 GW of capacity under implementation, it expects to cross 1.5 GW in group captive renewable energy by the time these new projects are completed within the next 6 to 24 months.

A Catalyst for Clean Energy in Industrial Sectors

The hybrid project with Tata Motors is a testament to TPREL’s strategy of providing sector-specific energy solutions. The company’s pan-India presence and regulatory expertise have enabled it to work across multiple sectors including:

• Steel

• Automotive

• Polymer

• Hospitality

• Retail

• Real Estate

This diversified customer base and multi-technology platform make TPREL one of the most agile and adaptable renewable energy providers in the country.

Co-Investment and Long-Term Impact

This project is being developed under a co-investment model backed by a long-term PPA, ensuring financial and operational stability over the project’s lifecycle. The 131 MW of capacity will directly support Tata Motors' manufacturing facilities, including its iconic plants in Pune, Sanand, and Pantnagar.

As industrial sectors face increasing pressure to reduce carbon footprints, such partnerships are becoming essential to stay compliant with global sustainability benchmarks and domestic energy mandates.

Aligning with National Goals and Policy Support

India has pledged to achieve 500 GW of non-fossil fuel-based energy capacity by 2030 as part of its Nationally Determined Contributions (NDCs) under the Paris Climate Agreement. Projects like this one contribute towards meeting national renewable energy targets and help reduce the country’s dependence on fossil fuels.

Moreover, group captive projects offer fiscal benefits, including lower electricity tariffs, exemptions from cross-subsidy charges, and no open access surcharges, making them attractive to industrial buyers like Tata Motors.

Way Forward: Setting a Benchmark in Green Manufacturing

This collaboration is more than just a renewable energy project — it is a model for industrial sustainability in India. With two Tata Group giants coming together for a common green goal, the project sets a precedent for other conglomerates and industrial players to follow.

Tata Power Renewable Energy Limited is not only helping reduce emissions, but also transforming India’s energy landscape by enabling smarter, greener, and economically viable power solutions. Its emphasis on scalability, innovation, and reliability ensures that its projects continue to make a meaningful difference in India’s net-zero journey.

Conclusion

The 131 MW wind-solar hybrid project between Tata Power Renewable Energy Limited and Tata Motors stands as a landmark step in India's industrial decarbonisation efforts. It embodies the synergy between clean energy innovation and sustainable manufacturing, marking a major stride in green industrial collaboration.

This partnership does not just meet regulatory demands but also reflects the shared vision of the Tata Group to lead India’s energy transition with integrity, innovation, and long-term environmental stewardship.

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