The U.S. International Development Finance Corporation (DFC) will provide up to $425 million in financing to TP Solar, a division of Tata Power Renewable Energy Limited (TPREL), for the construction of a 4.3-gigawatt greenfield solar cell and module manufacturing facility in Tamil Nadu’s Tirunelveli district.
The United States’ development financing organisation is called DFC.
The first module manufacturing at the facility is anticipated to begin by year’s end, and the first cell production is anticipated to begin in the first quarter of FY24.
This investment would boost India’s ambitious plan to enhance renewable energy manufacturing capacity to support domestic solar capacity expansion as part of its global green energy transition, pending notice to the U.S. Congress.
“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,” the power company said in a stock exchange filing.
DFC collaborates with global private sector actors to finance solutions to the most pressing problems now plaguing the developing world. During the recently finished G20 Summit in New Delhi, world leaders were discussing the energy transition and other crucial sustainability concerns. At that time, financial help was provided. According to the filing, this financial support will help India fulfil its pledge to reach 500 GW of sustainable energy goals by 2030.
We value DFC’s support for our Tamil Nadu-based factory that manufactures solar cells and modules. It demonstrates the confidence and faith DFC has in Tata Power’s capabilities to establish a cutting-edge manufacturing supply chain in the nation. According to Tata Power CEO and Managing Director Praveer Sinha, this will significantly aid the country’s shift to clean and renewable energy.
Advanced technology will be incorporated into the Tirunelveli manufacturing facility to enable the production of high wattage solar modules and cells with industry-leading efficiencies. Additionally, industry 4.0 requirements for smart manufacturing will be implemented at the site, according to the business.
According to the facility, it is anticipated that it will directly or indirectly provide over 2,000 job possibilities, the most of which will be for local women.
Tata Power intends to grow its capacity for clean and renewable energy, with a goal rise from 38% to 70% by 2030. The business is actively concentrating on increasing its renewable capacity and shifting to a consumer-oriented industry. Tata Power now has a renewable portfolio of about 7.8 GW, of which 4.1 GW is operational and 3.6 GW is being implemented. The company already runs a solar cell and module production facility in Bengaluru, each with a 500 MW capacity.
TPREL has signed a number of power agreements with several businesses recently, including Chalet Hotels Ltd., Sanyo Special Steel Manufacturing India, and Neosym Industry, among others.
To create a new 12MW peak on-site solar project at Tata Motors’ Pune commercial vehicle production facility, the electricity producer engaged into an electricity Purchase Agreement (PPA). The system is anticipated to produce 17.5 million units of power year, or roughly 17.2% of the annualised demand, potentially reducing carbon emissions by over 12400 tonnes/kWh annually.