The Board of Directors of the U.S. International Development Finance Corporation (DFC) has granted approval for providing up to $425 million in financing to TP Solar Limited, a subsidiary of Tata Power Renewable Energy Limited (TPREL). This funding will support the establishment of a state-of-the-art 4.3 GW solar cell and module manufacturing facility located in the Tirunelveli district of Tamil Nadu, India. DFC serves as the United States’ development finance institution.
TPREL operates as a subsidiary of Tata Power, a prominent integrated power company in India.
Anticipated milestones for the plant include the commencement of the first module production by the end of this year, with the first cell production slated for the first quarter of FY 24.
Subject to a U.S. congressional notification, this investment is set to bolster India’s ambitious agenda of expanding its renewable energy manufacturing capacity, thereby facilitating the growth of domestic solar capacity as part of the global transition towards clean energy. The financial support from DFC to Tata Power will play a pivotal role in reinforcing the country’s supply chain and advancing its pursuit of leadership in the clean energy sector.
DFC collaborates with private sector entities worldwide to fund innovative solutions for the pressing issues confronting today’s developing world. The financial backing arrives as global leaders gather to discuss energy transition and essential sustainability concerns during the recently concluded G20 Summit in New Delhi. This financial support plays a significant role in bolstering India’s determination to attain its 500 GW clean energy goals 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 Dr. Praveer Sinha, CEO&MD, Tata Power.
The Tirunelveli manufacturing facility will incorporate cutting-edge technologies to enable the production of high-wattage solar modules and cells, boasting industry-leading efficiency. Moreover, it will adhere to industry 4.0 standards for intelligent manufacturing. The plant is poised to generate over 2,000 employment opportunities, both directly and indirectly, with a particular emphasis on employing women from the local communities.
Tata Power is deeply committed to expanding its green energy capacity, with a strategic target of elevating it from the current 38% to an impressive 70% by 2030. The company is actively prioritizing the expansion of its renewable energy portfolio and transitioning toward a more consumer-centric business model.
Presently, Tata Power’s renewable portfolio stands at approximately 7.8 GW, comprising 4.1 GW in operational capacity and 3.6 GW under active implementation. Additionally, the company already operates a solar cell and module manufacturing plant with a capacity of 500 MW each, located in Bengaluru.