Tata Motors and Tata Power have entered into a Power Purchase Agreement (PPA) to develop a 4 MWp (Megawatt Peak) on-site solar project at Tata Motors’ Pune commercial vehicle manufacturing facility.

The installation is collectively expected to generate 5.8 million units of electricity, potentially mitigating over 10 lakh tonnes of carbon emission, Tata Power said in a statement on Wednesday (14 September).

Until FY22, Tata Motors at its Pune plant, including its passenger and commercial manufacturing facility, deployed 15 MWp solar project, generating 21 million kWh of renewable electricity.

Over the next few years, the company plans to expand the solar capacity of its Pune plant to meet the growing demand for renewable energy.

“We have been exploring different avenues and business models for using renewable energy to promote sustainable business growth," said Alok Kumar Singh, Plant Head, Commercial Vehicle Manufacturing Facility, Tata Motors.

"In FY22, the total renewable energy contribution at our CV Pune plant was 32 per cent. With this agreement, we reaffirm our commitment to moving closer to our goals of cultivating 100 per cent renewable energy capacity," Singh added.

In FY22, Tata Power, across all its plants in India, generated 92.39 million kWh of renewable electricity for its manufacturing operations, which is 19.4 per cent of the total power consumption leading to avoidance of 72,992 metric tonnes of carbon dioxide equivalent and financial saving of Rs. 27.37 crore, the statement said.