New Delhi, Aug 1 (IANS): Tata Power will focus on the renewable front for future growth and aims to raise its green energy portfolio to 50 per cent.

The company's growth will be concentrated in renewables, distribution and transmission of power along with new and value added business including rooftop solar, smart metering, micro-grids in rural areas and setting up EV charging stations, Tata Power said in a statement.

"We will continue with our plans to increase renewable energy footprint by capitalising on these opportunities through value accretive projects," it said.

The proposed Renewable InvIT is a growth engine and targets to be India's largest renewable InvIT with capacity of 15-20 GW, as per the company.

"This InvIT strategy enables Tata Power to raise capital at lower cost of capital post stabilisation of assets and grow the portfolio whilst deconsolidating debt from its books," it said.

Around 30 per cent of Tata Power's total generation comes from clean and green sources -- 3.9 GW out of 12.7 GW and the company has to achieve around 50 per cent clean energy portfolio by 2025.

During the last few years, the company has focused on consolidation and setting up asset light business models for growth - be it a "platform" for stressed generation and transmission opportunities, which allows significant high returns or the "InvIT" for renewables, which allows recycling of capital for future growth. These models will allow Tata Power to grow without over-leveraging its balance sheet.

Tata Power currently has a consumer base of 2.5 million and it aims to quadruple to 10 million over the next five years.

"We have recently acquired power distribution utility CESU in Odisha and will continue to evaluate similar opportunities in the future to be a leader in the space," it said.

The statement said that the company is poised to grow multi-fold on the back of latest business integrated solutions, focusing on mobility and lifestyle and powering emerging technologies for smart customers.