Tata Explores $8.5 Billion Clean Energy Investment in India’s South

(Bloomberg) -- Tata Power Co. Ltd. reached an exploratory agreement with the government of Tamil Nadu to invest an estimated 708 billion rupees ($8.5 billion) in clean energy projects, as the company seeks to decarbonize its generation capacity.

The firm signed a preliminary deal with the southern Indian state to build 10 gigawatts of renewable energy projects and expand an existing plan for solar panel manufacturing to 4.3 gigawatts of capacity, it said in a filing Tuesday.

The projects would spread over 50,000 acres (about 20,000 hectares) of land and would include solar, wind, hybrid and round-the-clock power plants, Tata Power said in the filing. 

India aims to nearly triple its green power capacity to 500 gigawatts by the end of the decade and the nation’s top firms, including Tata Power, Adani Green Energy Ltd. and Reliance Industries Ltd., are championing the cause. Yet, installations have lagged way behind targets, building pressure on Prime Minister’s Narendra Modi administration to accelerate the deployment of green projects. 

Renewables account for 38% of Tata Power’s generation capacity and will grow to 70% by 2030 as the company funnels investments in clean energy, according to a presentation it shared in November. By 2045, Tata Power aims to produce all its power from renewable sources. 

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