Tata Power, India's Tata Energy unit, is exploring a $5.6 billion investment in clean energy in Andhra Pradesh

Tata Power Renewables Energy Ltd. (TPREL), an Indian company, said it was exploring the possibility of setting up seven gigawatts of green energy in Andhra Pradesh's southern state for a total investment of 490 billion Indian Rupees ($5.63billion).

CONTEXT

TPREL is a Tata Power unit that looks at clean energy projects, including solar, hybrid and wind, with or without storing solutions. This makes it one of Andhra's largest investments in renewable energy, according to the company.

Tata Power plans to invest as much as $9 billion over the next 5 years to increase its renewable energy production.

Why is it important?

India has committed itself to setting up 500 GW non-fossil energy generation capacity by 2030, but it is still short of the target of adding 175 GW to its previous set by 2022.

States are also aiming to create their own portfolio of clean energy, as buying power from federally funded projects is expensive. This is due to a lack of transmission infrastructure between states and the high cost.

Andhra is aiming to develop renewable energy of more than 160 GW, with an investment potential of 10 trillion rupees.

India's record-breaking 73 gigawatts utility-scale renewables energy tenders were undersubscribed in 2024 due to the complex structure of the tenders and delays in interstate transmitting readiness.

The cumulative capacity of India's renewable energy sale agreements that have not been signed has exceeded 40 GW. ($1 = 87.0440 Indian Rupees) (Reporting and editing by Shreya biswas; Sethuraman N R)

(source: Reuters)