Tata Power's Green Initiative will create EV Ecosystem in India: Praveer Sinha, CEO & MD
The initiative has been launched to create an Electric Vehicle (EV) ecosystem under which EVs charging facility will be provided in every city where electric vehicles are sold. We have seen that electric vehicles manufacturers are coming out in the market like Tata Motors that has launched Nexon EV.
Praveer Sinha, CEO & Managing Director, Tata Power Co. Ltd, talks about Tata Power's green initiative, government's support in expanding the reach of EVs, renewable business and stress on power generating companies among others during an interview with Sandeep Grover, Zee Business. Edited Excerpts:
Q: Talk about Tata Power's green initiative related to e-charging and the opportunities that are available in the e-charging space?
A: The initiative has been launched to create an Electric Vehicle (EV) ecosystem under which EVs charging facility will be provided in every city where electric vehicles are sold. We have seen that electric vehicles manufacturers are coming out in the market like Tata Motors that has launched Nexon EV. Interestingly, we have added our initiative to it and will be adding more manufacturers with it to make sure that the EV charging facilities - that is essential for charging the EVs - are available everywhere. There are two types of charging systems are available and they are (i) one that can be charged at your home i.e. home charging systems and (ii) public charging i.e. which can be done in offices as well as public spaces or the charging areas of the railway/metro stations or public parking spaces.
We are in talks with corporations and railways among others to provide the facility. Any consumer can use the facility, in fact, they will be provided with an App that will help them in finding charging stations in the nearby area maybe 5-10 kilometres and whether they are free or occupied. They can also pre-book the facility. Thus, a user-friendly and consumer-friendly solutions will be provided. The facility will be provided in every city where electric vehicles are available.
Q: What kind of government initiatives/policy support does the power sector need to create EV Charging infra in India?
A: The government has brought several policies, like FAME-I and FAME-II schemes, and provided certain incentives in it for both the vehicle manufacturers as well as those who will create the EV infrastructure. And, we are working with the government to get benefits like fiscal incentives and pass it on them to the consumers. Tata Power is working with the government on several initiatives with the hope that it will be able to meet the government's target of turning 30-40% vehicles into EVs by 2030.
Q: You are also the largest renewable power producer in India. How the renewable business is performing and what initiatives will be taken to increase your share in renewable output further?
A: I have said earlier that renewable power is the focus area for us, apart from distribution. We are trying to find ways to increase its capacity over a period of time. Currently, renewable energy - wind and solar - has a 30% contribution to our entire capacity. We want to increase it to 70-80% in the next five years. So, it is a big initiative of Tata Power in renewable energy space. It is a big implementation plan and we hope that Tata Power will drive the renewable energy opportunity and the business in the country.
Q: Power demand has been under stress since the past few months. What kind of uptick is expected in power demand during summers and what impact will it have on your PLF?
A: Power consumption increases during summers while it declines between November and February because temperatures are low. Consumption pattern changes with temperature increases. We expect that the consumption pattern residentially, commercially and industrial will increase. Besides, the energy consumption will also go up due to the revival process of the economy. So, I think the worst is over as far as the power sector and power consumption is concerned and a lot of improvement will be seen in time to come.
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Q: There are reports that the state Discoms' dues over the power generation companies increase during the summer season. Are you facing any stress because of that?
A: Our power plants have committed PPAs. Tata Power's cost of generation is very low and that's why our payment reaches us at time. I expect that the reform processes introduced by the government, especially on distribution and Aditya Scheme will give an end to the issues of payment. The government has taken several initiatives like need to offer letters of credits (LCs). Under it, Discoms will have to Ls, to the power generating companies if they need fresh power. So, the government schemes will bring an improvement in the process. And as far as Tata Power is concerned then we receive our payments at the time and don't have any outstanding.
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