Tata Power's Tamil Nadu solar cell unit gets $425 mn from US govt agency

The American government’s development finance institution has approved investing up to $425 million in TP Solar, a subsidiary of Tata Power Renewable Energy (TPREL), for the Indian firm’s greenfield solar cell plant in Tirunelveli district of Tamil Nadu.

The 4.3 gigawatt (GW) plant’s first module production is expected by this year’s end. TPREL is a subsidiary of Tata Power, one of India’s largest integrated power companies.

Pending a US congressional notification, the investment by Development Finance Corporation (DFC) will help India to increase renewable energy manufacturing capability by supporting domestic solar capacity addition. DFC’s financial support of Tata Power will help secure the supply chain in the country’s journey for leadership in clean energy, said a statement by Tata Power.

DFC partners with the private sector players worldwide to finance solutions for challenges in the developing world. The financing support came at a time when global leaders were deliberating on energy transition and other sustainability challenges at the recently concluded G20 Summit in New Delhi. This financing support will help India in its commitment to achieve 500 GW of clean energy targets by 2030.

"We appreciate DFC's assistance for our solar cell and module production facility in Tamil Nadu. It shows the trust and belief DFC has in Tata Power’s ability to set up a state-of-the-art manufacturing supply line in the country. This will go a long way in supporting the renewable and clean energy transition in the country,” said Praveer Sinha, chief executive officer and managing director of Tata Power.

The Tirunelveli manufacturing plant will integrate advanced technologies enabling the production of high wattage solar modules and cells with industry-leading efficiencies. Additionally, the facility will implement industry 4.0 standards for smart manufacturing. The plant is expected to create over 2000 employment opportunities directly or indirectly, with the majority of the employees being women employees from the local areas.

Tata Power is committed to expanding its clean and green energy capacity, targeting an increase from 38 per cent to 70 per cent by 2030. The company is actively focusing on renewable capacity expansion and transitioning into consumer-oriented business. Currently, Tata Power's renewable portfolio stands at approximately 7.8 GW, with 4.1 GW operational and 3.6 GW under implementation. The company also has a solar cell and module manufacturing plant of 500 MW capacity, each at Bengaluru.