Tata Power beat analyst estimate with a profit of Rs 996 crore in Q4. Going ahead, the integrated power company would be ready with a detailed project report (DPR) for its nuclear projects. Its MD & CEO Praveer Sinha tells Raghavendra Kamath that data centres are not a significant opportunity for power players. Excerpts:
Where are you incurring the Rs 25,000-crore capex planned for FY 27?
Essentially four buckets,25% will go into large utility scale projects, 25% in transmission projects in Mumbai and others, 25% in T&D (transmission and distribution) put together, and remaining in hydro and pumped storage (PSPs) and project completion.
Analysts say due to thermal energy’s increasing role in mitigating rise in power demand, thermal only companies are better placed to tap opportunities. Since Tata Power is integrated player, what is your view?
I feel we are in a better position. One needs to derisk business. If one segment does not work, other segments can contribute. We have roof top, renewable energy, trading, open access and so of. We are a complete energy solutions company not just an energy generation company.
How are your nuclear energy plans coming along?
We are in talks with Nuclear Power Corporation of India (NPCIL) for small and medium reactors (SMR) and identified land for their nuclear projects in three states. We are doing technical studies and within six months , we would be ready with detailed project report (DPR).
What are your plans in Battery Energy Storage System (BESS) and green hydrogen segments?
We are setting up 100 MW BESS project in Mumbai, and FDRE (firm and detachable renewable energy) projects with battery energy storage systems. We are also working on behind the meter (BTM) systems including rooftop solar, BESS and microgrids at customers’ end. We are expecting revenues of `1,000 crore from behind the meters business.
Merchant power prices crashed recently due to limited storage and glut in solar power supplies. What is your view?
Merchant prices have not crashed but still very high in peak hours in the evening/ night and morning.
Do you think data centres are throwing significant supply opportunities for energy companies such as Tata Power?
I do not think there is significant opportunity or a game changer. They are offering a opportunity of 10GW or something. Each data centre draws a power of 1 to 5 MW. Large ones which are hyperscalers need 500MW. So not a big number. I think it’s normal growth. Upcoming commercial buildings, GCCs, residential buildings , EVs are also offering good opportunities.