Overview of Tata Power Renewable Energy Limited
Tata Power Renewable Energy Limited (TPREL) is a wholly owned subsidiary of Tata Power Company Limited. Founded in 1915, Tata Power is India’s largest integrated power company and a leading player in the renewable energy space. It has a portfolio of over 10,000 MW of renewable energy projects under various stages of implementation, and is the largest renewable energy company in India. TPREL’s portfolio includes wind and solar projects, with a focus on large-scale projects. In addition, it has a strong presence in the rooftop solar segment, with a total capacity of over 100 MW.
Credit Rating of Tata Power Renewable Energy Limited
Tata Power Renewable Energy Limited has been rated AA+ (stable) by CRISIL, a global rating agency. This rating reflects the strong financial and operational performance of the company. It has a strong balance sheet, with a debt to equity ratio of 0.73x as of 31st March 2021. The company has also been able to maintain a good liquidity position, with a current ratio of 1.66x. The company has also been able to maintain a good track record of timely debt repayments and debt servicing.
Impact of Credit Rating on Tata Power Renewable Energy Limited
The AA+ rating by CRISIL has enabled Tata Power Renewable Energy Limited to access capital at attractive rates, as lenders and investors have more confidence in the company’s ability to service its debt. The rating also helps the company to raise capital through debt instruments such as bonds and loans. This is important for the company as it is looking to expand its renewable energy portfolio over the next few years. The rating also helps the company to get access to institutional investors, which can provide the necessary capital to fuel its expansion plans.
Future Prospects for Tata Power Renewable Energy Limited
Tata Power Renewable Energy Limited has ambitious plans for the future. It is looking to expand its renewable energy portfolio over the next few years. It plans to add around 2,000 MW of capacity over the next five years, with a focus on both on-grid and off-grid renewable energy projects. It also plans to enter into the rooftop solar segment, with a target of 1,000 MW of capacity by 2023. This will help the company to tap into the growing residential rooftop solar segment, which is expected to grow significantly in the coming years.
Promotion of Renewable Energy by Tata Power Renewable Energy Limited
Tata Power Renewable Energy Limited is also actively promoting the use of renewable energy in the country. It has been working with the government to promote renewable energy projects, and has been involved in several projects that have helped to increase the penetration of renewable energy in India. These include the Solar Energy Corporation of India’s Solar Park in Karnataka, the first solar park of its kind in India, and the Solar Energy Corporation of India’s Solar Rooftop Program, which has helped to promote the use of rooftop solar in the country.
Conclusion
Tata Power Renewable Energy Limited has a strong financial and operational performance, which has enabled it to achieve an AA+ (stable) rating from CRISIL. This has enabled the company to access capital at attractive rates, and has helped it to expand its renewable energy portfolio. The company is also actively promoting the use of renewable energy in the country, and has been involved in several projects that have helped to increase the penetration of renewable energy in India. In the coming years, the company’s focus is expected to be on expanding its renewable energy portfolio, and bringing more renewable energy projects to the country.