Tata Power shares jump after subsidiary plans solar plant in Tamil Nadu

Shares of Tata Power Company Limited traded 2 percent higher at Rs 264 in early trade on September 28 after the company announced that its subsidiary, Tata Power Renewable Energy Limited (TPREL), will set up a 41-MW captive solar plant at Thoothukudi, Tamil Nadu.

According to a stock exchange filing by the company, this venture is in support of TP Solar Ltd (a subsidiary of TPREL), which is embarking on the development of a massive 4.3-GW solar cell and module manufacturing facility in Tirunelveli, Tamil Nadu.

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The move gains significance as the captive solar plant promises to generate 101 million units of electricity annually. It is also poised to make a substantial environmental impact by offsetting approximately 72,000 metric tonnes of CO2 emissions each year.

“The captive solar project will be commissioned 12 months from the signing of the Project Development Agreement (PDA),” the exchange filing stated.

TP Solar is scheduled to commence commercial production of solar cells and modules by fiscal year 2024-25. Furthermore, Tata Power also added that TPREL has established TP Govardhan Creatives Ltd, a specialised entity, to oversee the development, operation, and maintenance of the facility.

With the incorporation of the new captive solar plant, TPREL’s total capacity will substantially increase to 7,877 MW. This encompasses 3,720 MW of projects at different stages of development and an operational capacity of 4,157 MW. This operational capacity is divided into 3,154 MW of solar energy and 1,003 MW of wind energy.

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