Guided by its Founder Jamsetji Tata's vision that "clean, cheap & abundant power is one of the basic ingredients for the economic progress of a city, state or country", Tata Power commissioned India's first hydro-electric station in Khopoli, Maharashtra in 1915. The Khopoli hydro-electric power station had an installed capacity of 40 MW at the time it was established. In the later years, the power generation capacity was subsequently upgraded to 72 MW.

Over the years, the Khopoli hydro-electric power station has played a predominant role in facilitating overall development of the community around the area. Cheaper power and perennial availability of water in tailrace has helped many industries to set up their plants around the location. Khopoli hydro-power station has been the prime source of water for industrial units such as the Khalapur MIDC, Rasayani and Patalganga over the last several decades.