Tata Power Renewable Energy, the Indian integrated energy company, has inked two memoranda of understanding (MOUs) with the government of Tamil Nadu. The agreements focus on the expansion of renewable energy projects and solar manufacturing initiatives.
Under the second MOU, Tata Power plans to enhance its existing 4GW solar cell and 4GW module production facility in Tamil Nadu by an additional 300MW each. The expansion, representing an investment of approximately INR 800 crore (US$96.4 million) over the next two years, will exclusively introduce 300MW of TOPCon (tunnel oxide passivated contact) technology to both the cell and module assembly lines.
In the context of the Indian government's production-linked incentive (PLI) scheme, Tata Power secured 2.4GW of solar manufacturing capacity in the second round (from March 2023), amounting to INR 3.83 billion (US$46 million).
The second MOU outlines Tata Power's commitment to explore opportunities for developing 10GW of solar, wind, hybrid, and other renewable energy sources in Tamil Nadu over the next five to seven years. These strategically located projects across 50,000 acres of land could potentially attract an investment of INR 70,000 crore.
Tamil Nadu, ranking fourth in solar PV generation capacity installation in 2023 among Indian states, experienced a 28% year-on-year decline in deployment rates. Despite challenges in utility-scale projects, Tata Power remains optimistic about the future, citing positive prospects for tender-based deployments in the coming years, as indicated by JMK Research.