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Informist, Wednesday, Oct. 30, 2024

--Tata Power: Abnormal weather in Jul-Sept led to muted power demand

--CONTEXT: Tata Power management comments at virtual press conference

--Tata Power: Expect winter to be severe this time due to La Nina

--Tata Power: 4.3 GW solar module line is operating at full capacity

MUMBAI – Abnormal weather and an extended monsoon in Jul-Sept will likely result in a severe winter which would push power demand higher, Praveer Sinha, chief executive officer and managing director of Tata Power Co. Ltd., said in a virtual press conference Wednesday after the company announced its quarterly earnings. The management said power demand in Jul-Sept was muted owing to weather conditions.

The government has asked the company to operate its plants at full capacity till Dec. 31, under Sector 11 of the Electricity Act, 2003. The law allows the government to ask power generating companies to operate and maintain output to avoid any outage due to high demand. The company said it is looking to sign long-term agreements with all the five power procuring states for its Mundra plant in Gujarat. "We have been in discussions with them (states) and hopefully going forward we should be in a position to finalise it," Sinha said.

Tata Power expects the second 2-gigawatt solar cell line, under its 4.3-gigawatt solar cell and module manufacturing plant in Tamil Nadu, to be commissioned in November this year. The company expects stabilised production of cells from the plant by December, Sinha said. The plant is currently operating at its full capacity, he added.

The company said it is currently focussing on completing its existing third-party solar engineering, procurement, and construction projects by March. Tata Power will also focus on completing its pipeline of more than 5 gigawatt renewable energy projects in the next financial year, the company said. Tata Power aims to add close to 2.5-3.0 gigawatts capacity every year.

The company expects all its businesses to continue to grow in the upcoming quarters. On a query regarding expectations of coal prices going ahead, Sinha said that just as the price of imported coal remained stable in Jul-Sept, he does not expect much variation.

The vertically-integrated power company reported its earnings for the September quarter after market hours on Wednesday. The company reported a consolidated net profit of INR 9.27 billion for the September quarter, on revenue of INR 156.98 billion. Shares of Tata Power closed at INR 427 on the National Stock Exchange, up 0.4%.  End

Reported by Arya S. Biju

Edited by Ashish Shirke

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