India's energy goals need more than just targets: Praveer Sinha

Driven by universal shifts like climate change, power-hungry technology, and geopolitical considerations, the energy transition is no longer a choice. It is a reality that we must confront and work with as we move away from fossil fuels, the MD & CEO of Tata Power, writes

By Praveer Sinha

Published: May 30, 2025 02:53:53 PM IST

Updated: May 30, 2025 03:06:25 PM IST

The International Energy Agency has projected that, by 2027, renewables will supply 42 percent of global electricity. Illustration: Chaitanya Dinesh Surpur

The past decade has radically transformed how the world thinks about energy. What was once a theoretical conversation about cleaner alternatives is now a collective mission to redefine how the world can harness clean and green energy to power its homes, industries and economies. Driven by universal shifts like climate change, power-hungry technology and geopolitical considerations, the energy transition is no longer a choice. It is a reality that we must confront and work with as we move away from fossil fuels and re-engineer systems to be cleaner, more reliable and equitable.

With its size, growth ambition and development needs, India finds itself at the heart of this transformation. The question before us is no longer whether to shift, but how nimbly we can move, and how intelligently we can balance legacy with innovation. For us at Tata Power, this has meant returning to our roots as imagined by our founder JN Tata when he said, “clean, cheap and abundant power is one of the basic ingredients for the economic progress of a city, state or country”. As we reimagine our role in net zero, we are not merely adding more renewables to our portfolio but redesigning our business to power the future of safe, secure and reliable energy.

Shifting Gears, Rewriting Rules

Globally, tectonic shifts have happened in the energy landscape with renewables leading the fray. The International Energy Agency has projected that, by 2027, renewables will supply 42 percent of global electricity. Solar and wind power, once seen as supplementary, are now fundamental parts of global energy systems, as is evident from the concerted, policy-backed investments seen across the US, Europe and China. The future is green is not simply a clarion call now, but an accepted fact across sectoral participants. The International Renewable Energy Agency goes further, calling for global renewable capacity to triple by 2030. That means not just building more solar and wind parks, but also investing heavily in grids, cross-border infrastructure and storage. While the world has effectively mobilised resources to deploy the former, there remains much to do where infrastructure is concerned. This gap is especially stark in the Global South, where access, affordability and financing remain critical barriers.

However, despite the gaps, as the World Economic Forum reports, the Global South is expected to be the main driver of future energy demand. Currently, this region represents 56 percent of the world’s population but only 18 percent of global power generation capacity. Approximately 85 percent of new energy demand in the coming years is projected to come from outside the developed world, underscoring the urgent need to expand sustainable energy supplies in these regions.

The Global South recognises this and has taken ambitious targets to meet their burgeoning demand for power—at home, India’s goal of 500 GW of non-fossil energy by 2030 is one of the most ambitious in the world. However, these targets are uphill work. Of the many challenges facing the Global South in effectively and timely meeting their net-zero goals, the looming spectre of financing is perhaps the most critical. The World Bank highlights the financing challenge sharply, pointing to the $1 to $2 trillion annual investments needed to fund the transition and calling for de-risking mechanisms and policy certainty to crowd in private capital. Its emphasis on institution-building, regulatory clarity and concessional finance is especially relevant for countries like India as well as those in South Asia and Sub-Saharan Africa. Even when financing is secure, the Global South needs to contend with the hard realities of execution. More than 40 GW of projects languish in pipelines, plagued by delays around procedural issues, power purchase agreements, tariff disputes, land availability and transmission gaps. The intent is strong, but execution remains key to deciding how much we will manage to achieve in our attempt to combat climate change.

Ensuring universal access to clean, affordable power—especially in the Global South, which faces unique challenges requiring focussed and customised solutions—demands a deep commitment to innovation and R&D. While digitalisation and decarbonisation dominate the global agenda, democratisation and decentralisation of energy are equally vital for a just transition. With India’s per capita electricity consumption still among the lowest, grassroots innovation is key to bridging the gap. All this calls for a collaborative ecosystem where academia, industry and governments come together to create inclusive solutions that can be effectively scaled up to meet the needs of their teeming millions.

Tata Power’s deep and abiding faith in this collaborative principle is clear in every decision we take. Globally, we support cutting-edge research through a $25 million research commitment to the MIT Energy Initiative as part of the Tata Group’s $100 million pledge to future-ready technologies. Nationally, we are collaborating with IITs and other research institutions to co-develop locally relevant solutions to meet India’s unique energy needs. Our direct efforts span green skilling of youth (especially for rooftop solar installations), deployment of decentralised microgrids, and incubation of clean-tech startups focussed on scalable, affordable and sustainable technologies through our Clean Energy International Incubation Centre at Delhi. These initiatives reflect our resolve to manage disruption not just through technology, but through community-driven initiatives and involvement.

Also read: We want to ensure that there is no energy poverty in the country: Dr Praveer Sinha

A Ground-Up Reset

This commitment to clean and green power is nothing new. As a company that started with hydropower to combat rampant pollution in Mumbai, at Tata Power, the shift started well before the current wave of global urgency. Over the last eight years, we have rebalanced our portfolio and reoriented our investments around a singular goal: To become India’s most trusted integrated clean and green energy company. Today, clean and green capacity accounts for 40 percent of our operational portfolio. By 2030, that share will rise to 70 percent, translating into more than 25 GW of renewables and low-carbon technologies.

Our commitment to meeting India’s developmental and energy security needs will be met through a balanced energy mix. Our existing coal-based plants will continue to operate in alignment with these needs, and our investments in these plants will continue to be determined by the nation’s strategic long-term goals. As our legacy thermal assets serve the grid with reliability, we will simultaneously expand our clean and green power portfolio so that we can balance the twin requirements of energy security and the energy transition. Our strategy here is to go beyond thinking of energy supply as a commodity by radically reimagining it as a service through our focus on reliability, resilience and energy security.

To meaningfully redeem our pledge to India’s secure, clean and green future, we are taking strides to bolster the country’s energy infrastructure as well. Our new 4.3 GW solar cell and module manufacturing facility in Tamil Nadu is now operational, backed by a ₹4,500 crore investment. With 80 percent of the plant operated by women, and a strong emphasis on green skilling, this facility is emblematic of a modern, inclusive and sustainable manufacturing future. It aligns strongly with the Government of India’s Make in India mission and plays a pivotal role in bolstering global supply chain resilience. This manufacturing facility reduces import dependence and is already powering major projects in the country across public and private sector companies. It is geared for exports, positioning India and Tata Power as a credible player in the global clean tech market.

We are also strengthening the grid through investments in storage—our 2.8 GW pumped hydro project in Maharashtra is a key enabler for round-the-clock clean energy solutions. Beyond our borders, we are contributing to regional energy security by developing the 600 MW Khorlochhu Hydro power project in Bhutan as part of our wider plan to develop up to 5 GW clean energy plants in Bhutan, reinforcing India’s position as a responsible and collaborative power hub in South Asia.

Our financial commitment—₹25,000 crore annual capex from FY26 onwards—and collaborations with states like Rajasthan, Andhra Pradesh and Gujarat for renewable energy parks reflect our long-term commitment towards sustainable energy solutions. These are not one-off projects but strategic investments in India’s building blocks for clean energy.

Taking the energy transition to every household in the country, our ‘Ghar Ghar Solar’ initiative, supported by bank partnerships and government subsidies, has enabled rooftop solar adoption in over 1.5 lakh homes, cutting electricity bills by up to 70 percent and accelerating consumer-led green energy adoption. The initiative is closely aligned with the PM Surya Ghar Yojana, reinforcing the national push towards solarising households both in urban and rural areas, thereby ensuring last-mile energy self-reliance. At the same time, we are building future-ready capabilities across the value chain: EV charging infrastructure, smart meters, hybrid PPAs for industrial clients, and energy-as-a-service models tailored to meet evolving consumer expectations and demand. Our collaboration with Tata Steel—delivering 70 percent renewable energy through hybrid PPAs—demonstrates that decarbonisation can be viable and value-creating in hard-to-abate industries too.

While we solve problems across customer segments today, we have one eye firmly on the horizon. One of the most promising solutions on the horizon is the deployment of Small Modular Nuclear Reactors (SMRs)—a technology that can deliver zero-emission, firm base load power, round the clock. Tata Power is already working on this frontier, beginning with Bharat SMR, in line with the government’s policy shift. SMRs will be vital to bridge the gap between intermittent renewables and fossil-free base load, ensuring stability in the grid of the future.

The Road Ahead

India’s energy future will not be shaped by targets alone. It will be shaped by the capacity to implement at scale, nimbly and with the end-user in mind. As India advances toward becoming the world’s third-largest economy, we must usher in a new age of clean electricity solutions.

This new era will be driven by an energy sector characterised by digital, decentralised, decarbonisation solutions. As the demand for power rises, driven by cooling needs and data centres, our solutions need to keep pace. Meeting this surge sustainably is not just an opportunity—it’s a necessity.

To power India’s clean energy future, three priorities stand out. First, modernising the grid is essential to manage the intermittency of renewables, enable open access and integrate storage for round-the-clock clean and green power. Second, reforming discoms and contracting frameworks is critical—the slower we move, the more we derail momentum and investor confidence. Third, we must create financial structures that unlock large-scale investments, including green bonds, sovereign guarantees, and blended finance for next-generation technologies. These pillars will be vital in translating intent into impact as India enters a new era of electrification.

Globally, India has the potential to be more than just a clean energy adopter—it can be a global solutions provider. With the right push in innovation, policy and financing, we can lead in areas like solar manufacturing, energy storage and advanced grid technologies, just as we did in Information Technology.

But to do that, we must create a complete ecosystem: Green skills, supply chains, manufacturing at scale and policy continuity. Tata Power is already delivering on this in India and the region. Our work in Bhutan is a testament to our regional commitment to energy reliability, resilience and stability.

Our roadmap to net-zero by 2045, validated by the Science Based Targets initiative, is not an aspiration—it’s a blueprint in action. We are building for a future that demands more from energy systems—more sustainability, more resilience, more inclusion.

Tata Power is preparing for the next century of energy security and stability. We believe this moment is not just a transition—it is a transformation. If India has to reach its 500 GW non-fossil goal by 2030 and net-zero by 2070, the time to act is now. The world is moving. India can lead. And we are ready to power that future.

(This story appears in the 30 May, 2025 issue of Forbes India. To visit our Archives, click here.)