Tata Power Renewable Energy (TPREL), the green energy subsidiary of Tata Power, has embarked on a new path toward sustainable energy solutions through its recently signed non-binding Memorandum of Understanding (MoU) with ONGC, one of India's premier public sector undertakings. The announcement, made during the India Energy Week 2025, outlines plans for both companies to collaborate on exploring commercial opportunities within the Battery Energy Storage System (BESS) sector.
This joint effort is characterized as not just another agreement, but as a significant milestone for both organizations aiming to bolster renewable energy initiatives across India. With the global push for cleaner energy alternatives, the integration of BESS is seen as fundamental to achieving grid stability, supporting electric vehicle (EV) infrastructure, and enhancing the overall reliability of energy systems.
The MoU signing drew notable figures, including Petroleum and Natural Gas Minister Hardeep Singh Puri, ONGC Chairman and CEO Arun Kumar Singh, and TPREL CEO and MD Deepesh Nanda, who all stressed the shared commitment to driving India’s energy transition. Nanda pointed out the collaboration’s strategic importance, stating, "This partnership with ONGC is a significant milestone in our mission to drive India’s energy transition." The commitment goes beyond just partnership; it aims to align both companies' objectives with the country's ambitious clean energy goals.
TPREL is already making strides with its recently commissioned 100 MW Solar PV plant, boasting alongside it India’s largest solar and BESS project, located at Rajnandgaon, Chhattisgarh. This infrastructure not only symbolizes Tata Power’s investment in sustainable energy but also plays an integral role in stabilizing the grid and promoting the integration of renewable sources.
Singh, addressing the significance of the MoU, highlighted ONGC's dedication to enhancing energy storage capabilities, which are deemed necessary for the widespread adoption of renewable energy. He stated, "By leveraging our collective expertise, we aim to contribute meaningfully to India’s energy transition and long-term energy security." This reinforces ONGC's objective of participating actively in India’s efforts to reduce dependence on fossil fuels.
At the stock market level, Tata Power's shares were under scrutiny following the news of the collaboration. On February 12, shares closed at ₹348.10, showing slight fluctuations amid market reactions to this pivotal announcement. Investors had previously observed Tata Power reaching noteworthy trading highs and lows over the past year, with marked interest likely spurred by this strategic partnership.
The collaboration underlines the pressing need for innovative solutions within the energy sector, particularly concerning BESS technology. This is viewed as instrumental for offering backup power solutions, facilitating energy trading through ancillary services, and supporting hybrid energy solutions and grid stabilization, thereby addressing the increasing demand for renewable energy sources.
Both Tata Power and ONGC have articulated ambitious targets aligning with national strategies for achieving substantial renewable energy capacity by 2030, including the government’s overarching commitments to net-zero emissions by 2070. This framework ensures the companies are not merely partners but are pivotal elements of India's larger energy narrative.
Looking forward, ONGC and Tata Power are poised to not only expand their operational horizons through this collaboration but also to reinforce their market positions as key players in the renewable energy sector. The future outlines increased reliability and the successful integration of energy storage solutions, potentially leading to revolutionary developments in India's energy strategy.
The unique combination of Tata Power’s existing renewable energy infrastructure with ONGC's strengths not only stands to boost operational capacity but also to create new and sustainable pathways toward clean energy. The MoU marks what may very well be the tipping point for transformative collaboration within the energy sector, spotlighting India’s quest for cleaner and greener energy solutions.