This article is incorrect in one aspect, i.e volatility. RE helps with peak power requirements not base load. The entire western world has a synchronous wind,solar shortfall along with a bad gas storage situation(< 50%) creating a mother of all price surges with gas going from 55 to 175$ on the spot market. Heavy rise in coal spot prices too as wind, solar failed by over 20%.
I wish they actually see what’s happening in EU and then plan accordingly. I will leave it with Putin’s words in the World Energy Summit 2021
We need storage systems because green energy generation is not constant. Pumped storage is one of the best ways to do it. I wonder if collaboration with NHPC ,SJVN etc. is on the table to retrofit their hydropower plants for pumped storage applications.
Thanks for sharing this. Just started reading on the EV charging business model. Key findings till now are
Utilisation tends to be low as per global experience. Usually around 10-15% for commercial chargers
Power rates charged are normally 2x of what a consumer would pay at home, so it costs a lot more to charge at commercial EV station.
Charging at home is cheaper but takes much longer time.
Will Indian consumer pay so much extra for fast charging? Will there be mushrooming of mom and pop charging stations like we have cash wash stations these days like in Mumbai.
So lots of questions still to determine the return potential.
Appreciate your view but if it is made cheaper by way of tax benefits it will attract momentum I believe and Tatas will always be having first mover advantage.
What is unique or competitive advantage that they have ?
We saw how Jio became one of the top Telco in india within 5 years even after entering last .
whar stops all the Mall operators to enter in to this or all the commercial buildings also to offer this ?
That can potentially take away very premium customer base away so I am still not able to figure out business model around it .
Only competitive can be scale… So unit economics become favourable compared to less scaled competitors, also Tata has backwards power generation and transmission and distribution integrator that should add to unit economics and finally TCS and Tata Elexi will enable this model to use tech stack dor efficiencies…
And finally the potential customer programmes like Tata EV car service stations at charging stations can be a synergy.
These are the natural leverages I can visualize,which other players will lack. So there will be favourable unit economics.
Let me repeat an obvious piece that is overlooked. The infra for charging stations is much larger than what is typical of the roadside transformer can handle. I’m not talking about 1 single charging point but a bank of them being used. battery 440KWH x 10 pts all charging is about 4.4MW power needs, right?
We have to upgrade the last mile power support infra AND supply the requisite amount of power.
Tesla has super charger which charges for 200 miles in just 15 minutes. Also it has more than 25,000 super chargers across US. I heard cost of charging Tesla car at private station is around $15 for 400 miles charge. Tata power just has 1000 stations and I dont know how much(time taken and miles charged) those EV stations can charge. Tata Power has long way to go. I think EV will take few years to evolve in India. It will start with 2 wheeler first which is easy to charge at home. I heard Maruti commentary few months back that it is chicken-egg situation. Companies can make EV cars, but there are no infrastructure in term of charging stations. Companies like Tata Power might say that there are no stations since there are less EV. Though Tata Power may not be the right example as they can build infra for Tata Motors EV(same as Tesla who is building car and setting up charging stations).
Sep 2021 earnings report released. What are your views about their performance? Aligns with expectations?
The market has been reacting very unexpectedly the last few days, so I don’t know what to think.
I think that this is a huge deal, if it materializes. If Tata Power as a whole is worth $9.5-$10B as a whole, and the renewables division gets a $5B valuation, the value of the entire entity is bound to move.
