The US International Development Finance Corporation’s (DFC) Board of Directors on Monday approved the provision of up to $425 million in financing in TP Solar Limited, a subsidiary of Tata Power Renewable Energy Limited (TPREL), for its upcoming greenfield 4.3 GW solar cell and module manufacturing plant at Tirunelveli district in Tamil Nadu. DFC is America’s development finance institution. Tata Power Renewable Energy Limited (TPREL) is a subsidiary of Tata Power. The plant’s first module production is expected by the year end and the first cell production is expected in the first quarter of FY24.
Pending a US congressional notification, this investment, TCS said, will support India’s ambitious program to increase renewable energy manufacturing capability to support domestic solar capacity addition as part of its global green energy transition. DFC’s financial support of Tata Power will help secure the supply chain in the country’s journey for leadership in the clean energy space.
DFC partners with the private sector players across the globe to finance solutions to the most critical challenges facing the developing world today. “The financing support came at a time when global leaders were deliberating on energy transition and other critical sustainability challenges at the recently concluded G20 Summit in New Delhi. This financing support will contribute towards securing India’s commitment to achieve 500 GW of clean energy targets by 2030,” TCS said in a statement.
“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 plant will integrate 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.
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. Currently, Tata Power’s renewable portfolio stands at approx. 7.8 GW, with 4.1 GW operational and 3.6 GW under implementation. The company is already operating a solar cell and module manufacturing plant of 500 MW capacity, each at Bengaluru.
