Tata Power and The Rockefeller Foundation announced the launch of a venture to set up microgrids to address the lack of access to affordable, reliable electricity for millions of rural homes and enterprises. By scaling up an innovative microgrid model to be implemented in collaboration with Smart Power India (SPI) and the Institute for Transformative Technologies, TP Renewable Microgrid Ltd. will provide clean power to nearly 5 million households, directly impacting the lives of 25 million people over the next decade.
TP Renewable Microgrid Ltd. will be operated and managed by Tata Power, India’s largest integrated power company with approximately 11,000 MW of installed generation capacity and over 2.6 million customers under management across Delhi, Ajmer and Mumbai.
“We are proud to bring energy to millions of people, once at scale, TP Renewable Microgrid Ltd. anticipates supporting 100,000 rural enterprises, creating 10,000 new green jobs, and providing irrigation for over 400,000 local farmers,” said Praveer Sinha, CEO, Tata Power. “We look forward to empowering communities across India by creating micro enterprise and creating opportunities for all people.”
TP Renewable Microgrid Ltd.’s anticipated rollout of 10,000 grids will drastically expand the global microgrid footprint, and will act as a catalyst for governments and the private sector to collaborate in building clean, resilient and stable grids in other markets. SPI, which was launched by The Rockefeller Foundation in 2015, would provide technical expertise to the enterprise, having built microgrids that today provide clean, distributed electricity to more than 200 villages in rural India.
“We have an unprecedented opportunity to transform the lives of millions of people in India by providing access to power,” said Dr. Rajiv J. Shah, President of The Rockefeller Foundation. “Providing reliable electricity to the communities that need it most is one of the best ways for us to end poverty and unleash economic opportunity in our lifetimes.”
Rural businesses and households continue to rely on alternative sources to power daily needs – with more than 40 per cent of rural enterprises in states like Bihar and Uttar Pradesh relying on non-grid sources of power such as diesel. TP Renewable Microgrid Ltd. will provide a competitive and cleaner source of power, expanding access and lowering effective electricity costs and carbon emissions by 1 million tons per year as well as reducing the amount of diesel burned by 57 million litres yearly. Over time, the opportunity to deploy grid-interactive solutions will materialise, creating a more integrated, stable and smart rural grid.
In addition to building, owning, and operating microgrids in India, TP Renewable Microgrid Ltd. intends to provide ancillary micro enterprise services to benefit communities.