The U.S. International Development Finance Corporation’s (DFC) Board of Directors approved the provision of up to USD 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, India.
DFC is America’s development finance institution.
TPREL is a subsidiary of Tata Power, one of India’s largest integrated power companies.
The plant’s first module production is expected by the year end and the first cell production is expected in the first quarter of FY 24.
Pending a U.S. congressional notification, this investment 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 clean energy space.
DFC partners with 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.
“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 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% to 70% 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 approx. 7.8 GW, with 4.1 GW operational and 3.6 GW under implementation.
The company also has already operated a solar cell and module manufacturing plant of 500 MW capacity, each at Bengaluru.