Tata Power gains $425m in US funding for solar manufacturing plant in India

The US International Development Finance Corporation has approved financing to the tune of $425 million for Tata Power Solar Limited's planned 4.3GW solar manufacturing plant in Tamil Nadu, India.

The greenfield 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.

The financial support, pending a congressional notification, aims to boost India’s renewables manufacturing capability and supply chain, as well as support domestic solar capacity addition.

"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 of Tata Power.

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The Tirunelveli manufacturing plant will produce high-wattage solar modules and cells based on industry 4.0 standards for smart manufacturing. The plant is expected to create over 2,000 employment opportunities directly or indirectly from local areas.

Currently, Tata Power's renewable portfolio stands at approximately 7.8GW, with 4.1GW operational and 3.6GW under implementation. The company is also operating a solar cell and module manufacturing plant of 500MW in Bengaluru.

DFC partners with private sector players across the world to finance solutions designed to help developing nations address regional challenges.

This financing is geared to help India reach its goal of 500GW of clean energy by 2030.

The country has ambitious decarbonisation targets, according to the International Energy Agency, aiming to reach net zero emissions by 2070.

The country is experiencing some of the highest economic growth globally. Even though coal and oil have traditionally served as the foundation of India’s industrial growth, Prime Minister Narendra Modi plans to increase renewable energy capacity and reduce the emissions intensity of its economy by 45% by 2030.