Tata Power accelerated its clean energy and sustainability transition in FY2025–26, recording a sharp reduction in greenhouse gas emissions while expanding renewable generation, solar manufacturing, energy storage, electric vehicle charging and smart grid infrastructure.
Tata Power Sustainability Report indicated that the company’s clean and green energy portfolio reached 7,856 MW, representing approximately 47 percent of its 16.7 GW installed and managed capacity as of March 31, 2026. Tata Power added 2,452 MW of renewable energy capacity during the fiscal year, driving 26 percent year-on-year growth in its clean energy portfolio as it works toward increasing clean and green generation capacity to 80 percent by 2030.
Tata Power has also committed to achieving Net Zero before 2045, supported by validated Science Based Targets initiative targets. Its decarbonisation strategy combines renewable capacity expansion with a gradual transition away from thermal generation, improvements in station heat rate and auxiliary power consumption, energy storage and cleaner technologies.
“We remain committed to leading India’s clean energy transition, embedding sustainability at the core of our operations to build a resilient, green future,” Himal Tewari, who oversees the integration of ESG priorities, said.
Tata Power Scope 1 and Scope 2 Emissions Fall Sharply in FY26
Tata Power reported a significant improvement in its operational carbon footprint during FY2025–26. Scope 1 GHG emissions declined to 26.07 million metric tonnes of CO2 equivalent from 41.35 million tonnes in FY25, while Scope 2 emissions dropped to 2.59 million tonnes from 3.20 million tonnes.
Combined Scope 1 and Scope 2 emissions consequently fell to approximately 28.65 million tonnes of CO2 equivalent, compared with 44.55 million tonnes in the previous year, representing a decline of about 35.7 percent.
The improvement was also reflected in carbon intensity. Scope 1 and Scope 2 GHG emission intensity per rupee of turnover declined to 0.0000450 from 0.0000691, while PPP-adjusted emissions intensity improved to 0.0009152 from 0.0014271.
Emission intensity based on power generation improved to 0.0007902 tonnes of CO2 equivalent per kWh, compared with 0.0008410 in FY25.
Scope 3 Emissions Reach 26.57 Million Tonnes
Tata Power reported comprehensive value-chain emissions under the GHG Protocol Corporate Value Chain Standard, with Scope 3 emissions at 26.57 million tonnes of CO2 equivalent, or 26,569,151 tCO2e, compared with 26.68 million tonnes in FY25.
Fuel and fuel-related activities represented the largest component of Scope 3 emissions at 21,302,217 tCO2e, followed by emissions associated with the use of sold products at 3,429,445 tCO2e. Other categories included capital goods, purchased goods and services, transportation, waste generated from operations, employee commuting, business travel and end-of-life treatment of sold products.
Scope 3 emissions per rupee of turnover stood at 0.0000417, compared with 0.0000414 in FY25. Scope 3 emissions intensity based on power generation was 0.0007327 per kWh, versus 0.0005036 in the previous year.
Renewable Energy Consumption More Than Doubles
Renewable energy use within Tata Power’s operations more than doubled to 683,014 GJ in FY26 from 336,802 GJ in FY25.
At the same time, non-renewable energy consumption declined to 360.54 million GJ from 511.92 million GJ, helping reduce total energy consumption to 361.22 million GJ, compared with 512.26 million GJ in FY25.
Energy intensity per rupee of turnover improved to 0.0005672 from 0.0007942, while PPP-adjusted energy intensity declined to 0.0115376 from 0.0164077.
The figures indicate that Tata Power is simultaneously expanding clean energy use and improving the energy efficiency of its operations.
Tata Power Targets 80 Percent Clean and Green Capacity by 2030
Renewable energy expansion remained central to Tata Power’s long-term sustainability strategy. Clean and green sources, including solar, wind, hydro and waste heat recovery, accounted for approximately 47 percent of overall capacity at the end of FY26.
The company commissioned 2,452 MW of renewable capacity during the year, supporting 26 percent year-on-year growth in the clean energy portfolio and taking clean and green capacity to 7,856 MW.
Tata Power is targeting 80 percent clean and green generation capacity by 2030, a key milestone on its pathway toward Net Zero before 2045.
Energy storage is becoming another major pillar of that transition. Tata Power commenced construction of 1,600 MW of advanced hydro and pumped storage projects and is developing a broader 4.5+ GW hydro and pumped storage pipeline.
The company separately identifies 2.8 GW of pumped hydro and hybrid renewable projects as part of its strategy to provide more reliable clean electricity, improve grid stability and reduce dependence on fossil fuels.
Solar Portfolio Expands Beyond 6.5 GW
Solar power continues to drive Tata Power’s renewable expansion. The company operates more than 6.5 GW of utility-scale ground-mounted solar capacity, with another 5.1+ GW under development.
Tata Power Renewable Energy Limited has also crossed 10 GW of cumulative solar EPC execution, demonstrating the scale of its engineering and construction capabilities in the solar market.
Distributed solar witnessed strong growth as well. Tata Power crossed 3.7 lakh rooftop solar installations during FY2025–26 and added 1.7 GWp of rooftop capacity, taking cumulative rooftop solar capacity beyond 4.8+ GWp.
The expansion gives residential, commercial and industrial consumers greater access to decentralized renewable electricity while supporting emissions reduction across the broader power system.
Tata Power Expands Solar Manufacturing With ₹6,500 Crore Investment
Tata Power is also building domestic manufacturing capacity to support India’s solar supply chain.
Its 4.3 GW solar cell and module manufacturing facility in Tirunelveli, Tamil Nadu, produced 3,825 MW of solar modules and 3,759 MW of solar cells during FY2025–26, while maintaining operational yields of more than 95 percent.
The company has approved a further ₹6,500 crore investment to develop a 10 GW ingot and wafer manufacturing facility, strengthening its presence across the solar manufacturing value chain and supporting greater domestic production of clean energy technologies.
EV Charging Network Crosses 200,000 Home Chargers
Electric mobility remains another element of Tata Power’s decarbonisation strategy.
During FY2025–26, the company expanded its charging network to more than 200,000 home chargers and over 5,800 public and semi-public charging points.
The charging infrastructure supports rising electric vehicle adoption while enabling the shift from conventional transport toward lower-carbon mobility.
Smart Meter Deployment Crosses 50 Lakh
Tata Power has deployed more than 50 lakh smart meters, strengthening digital energy management across its distribution operations.
Smart meters enable more effective monitoring of electricity use, improve network efficiency and provide a digital foundation for integrating distributed renewable generation and other flexible energy resources.
Digitalisation and smart grid technologies are increasingly important as Tata Power combines traditional electricity networks with renewable generation, storage and consumer-side energy solutions.
NOx, SOx and Particulate Matter Emissions Decline
Tata Power also recorded sizable reductions in major air pollutants during FY26.
NOx emissions fell to 43,192 tonnes from 60,713 tonnes, while SOx emissions declined to 94,031 tonnes from 159,883 tonnes. Particulate matter emissions decreased to 4,554 tonnes from 5,833 tonnes.
The reductions complement the company’s broader climate strategy by addressing local air-quality impacts associated particularly with thermal power generation.
Tata Power Targets Zero Waste to Landfill by 2030
The company is working toward achieving Zero Waste to Landfill before 2030, supported by improved waste segregation, recovery and recycling practices across operations.
Fly ash generated by thermal power plants is being utilized in productive applications, helping reduce waste disposal while supporting circular material use.
Water management remains important because of the requirements of thermal generation. Tata Power has deployed Zero Liquid Discharge systems across major thermal assets to limit wastewater discharge, improve reuse and reduce pressure on freshwater resources.
Tata Power Sustainability Strategy Gains Momentum Toward Net Zero 2045
Tata Power’s FY2025–26 sustainability performance highlights the scale of its transition from a conventional power utility toward a diversified clean energy company.
The reduction of combined Scope 1 and Scope 2 emissions by approximately 35.7 percent, renewable energy consumption rising to 683,014 GJ, clean and green capacity reaching 7,856 MW, and the addition of 2,452 MW of renewable capacity demonstrate measurable progress.
At the same time, more than 6.5 GW of operating utility-scale solar, 5.1+ GW under development, a 4.5+ GW hydro and pumped storage pipeline, 4.8+ GWp of rooftop solar capacity, the ₹6,500 crore planned investment in solar manufacturing and Tata Power’s 80 percent clean and green capacity target for 2030 provide the foundation for its longer-term ambition of achieving Net Zero before 2045.
SHAFANA FAZAL
