On the other hand, there is much to be gained by engaging in long-term Power Purchase Agreements (PPAs), as power becomes more affordable due to falling tariffs while the cost of grid electricity rises.
We joined RE100 in March 2016, with an ambition to source 100% renewable electricity. It not only helped reduce the environmental impacts of our manufacturing operations but also helped us in maintaining the Tata Group’s commitment on UN Sustainable Development Goals. Since then, many others have followed our lead, and the campaign now unites 100 of the world’s most influential companies.
On joining RE100, Tata Motors had already advanced several steps down the path to renewables, enabling us to source around 8% of our electricity from renewable sources in Financial Year (FY) 2015-16 and adding about 8.25 % in 16-17. We currently procure or generate around 4,818 MWh of renewable power.
Presently, our renewable electricity consumption stands at 16.25%. Our progress comes from both on-site and off-site approaches, but mostly from renewable electricity sourced from the grid, as space will always be a constraint for renewable energy installations on-site.
In addition to increasing our own green power capacity, Tata Motors is working with vendors and suppliers to increase their uptake of renewables. In FY 2016-17, we influenced our suppliers by conducting awareness sessions on sustainability, and collecting baseline sustainability data and on-site assessments from more than 50 suppliers. We are encouraging our suppliers to reduce their greenhouse gas emissions by motivating them to increase their operational efficiency and transitioning to renewable power. Following this, some of our suppliers like Shriram Foundries have already converted their major operations to renewables.
Ever since we committed to RE100, many organizations have reached out to us to seek guidance on kick-starting their renewable journey. We have presented our case study at RE100 webinars with other member companies and have also spoken about our commitment to renewable energy and RE100 at various events. I have personally spoken at various industry forums and have been actively participating in corporate PPA forum.
Basic business value propositions for companies to go renewable include hedging against the risk of higher costs through the conventional energy market, establishing leadership in corporate delivery of the country’s Nationally Determined Contributions (NDCs), and reaping related reputational benefits for the brand at large.