Tata Power Reconsiders Thermal Investments Amid Rising Electricity Demand: CEO Praveer Sinha

 Tata Power, one of India’s leading power utilities, is re-evaluating its stance on thermal energy. Two years after announcing a strategic pivot away from coal-based projects to focus exclusively on clean energy, the company is now open to investing in thermal power again. CEO and MD Praveer Sinha revealed to Moneycontrol that the surge in electricity demand has prompted a reassessment. "Energy security and energy transition must go hand in hand," Sinha stated.

This shift in strategy aligns with broader national plans. The Indian government intends to add nearly 95 gigawatts (GW) of thermal power capacity by 2032, while simultaneously pursuing a target of 500 GW in non-fossil fuel-based capacity.

In a recent interview, Sinha discussed Tata Power’s future plans, including capital expenditure, renewable energy projects, and the impact of global trade shifts influenced by U.S. tariffs.

Reflecting on the company’s last major thermal investment—the acquisition of a 1,980 MW supercritical thermal power plant in Prayagraj, Uttar Pradesh—Sinha explained the rationale behind the renewed interest in coal power.

“It’s all about timing,” he said. “Solar and wind have specific production hours. What happens when those aren’t available? That’s where solutions like battery storage and pumped storage plants (PSPs) come in.”

Tata Power is already developing 2,800 MW worth of PSPs, but Sinha noted these projects would not be fully operational until 2029-30. Until then, thermal power remains a necessary component to meet rising and continuous demand