Tata Motors joins RE100 renewable energy group

re100Tata Motors Limited, India’s largest automobile manufacturer, has become the second Indian company to join RE100 – a global initiative of the world’s most influential companies committed to 100% renewable power.

The company, which manufactures a range of commercial and passenger vehicles as well as defence and homeland security vehicles, has set itself the goal of using 100% renewable energy.

The move follows BMW Group joining RE100 in December last year.

The group is led by The Climate Group in partnership with CDP.

Mr. Arvind Bodhankar, Chief Sustainability Officer of Tata Motors Limited, said: “The RE100 movement shows that the transition to renewable energy is achievable and it offers a powerful network to support and celebrate businesses increasing their use of renewable power. Tata Motors is proud to join such an initiative.”

Not including its subsidiaries, Tata Motors currently sources around 8% of its electricity from renewables.

“Our climate change policy aims to maximize the use of renewable energy in our manufacturing operations. Doing so will not only reduce our carbon emissions, but also lead to long-term financial savings.”

Tata Motors has its own ‘captive wind power’ project of 21.95 MW capacity. In the financial year 2014-15, the company’s manufacturing operations at Pune, India, utilized wind energy of 26 million units, equivalent to carbon savings of 24,435 tCO2e, resulting into savings of INR 163.5 million ($2.4 million) in electricity charges.

Tata Motors has solar energy installations at three of its manufacturing plants in India. It is also planning to source more renewable electricity from the grid in the future through open access agreement.

Krishnan Pallassana, Executive Director, India at The Climate Group, said: “At a time when India is poised to lead a low carbon economic revolution, it is of great privilege that Tata Motors has joined the RE100 club, thereby leading and inspiring the manufacturing sector to use renewable energy

“By joining RE100 Tata Motors is sending a clear market signal that business wants more renewable energy on the grid. A range of other options already available to companies offer energy security, financial savings and carbon cuts – it’s great to see Tata Motors taking advantage through its wind and solar investments.”

Mark Kenber, CEO of The Climate Group said: “Businesses have a fundamental role to play in delivering a low carbon economy, and the Paris Agreement is giving them the confidence to go further and faster in their efforts. Tata Motors is one of the first companies to seize the opportunity post Paris, and we know many more will follow.”

Despite India adding considerable electricity generation capacity to the grid in the last decade, energy supply is not meeting growing demand. New York University estimates that electricity shortages are a substantial drag on Indian manufacturing, reducing revenue by 5.6% – 8.6%. Meanwhile infrastructure issues are causing the price of grid electricity to rise.

In November 2015 The Climate Group and CDP published a RE100 briefing, setting out the various opportunities for businesses to help drive the development of a reliable and affordable supply of renewable energy in India, and highlighting business benefits such as greater energy security and protection against cost inflation.

Through its Technical Advisory Group and Knowledge Sharing Platform, RE100 will help Tata Motors to identify the best available options for sourcing 100% renewable electricity.