On September 10, Tata Power's shares saw a notable rise, gaining 3.14% to ₹431 per share on the BSE. This increase followed the announcement that the company's subsidiary had begun producing solar cells at its new facility in Tirunelveli, Tamil Nadu.
Tata Power's commitment to renewable energy
Tata Power, through its subsidiary TP Solar, has commenced commercial production at India's largest single-location solar cell and module manufacturing plant in Tirunelveli. This milestone was achieved on September 9, 2024, marking the beginning of a new chapter in Tata Power's journey towards sustainability and renewable energy. The Tirunelveli facility, now operational, has an initial solar cell production capacity of 2 GW, with plans to double this capacity in the coming weeks. The plant's production is expected to peak at 4 GW, significantly boosting Tata Power's ability to meet the increasing demand for high-quality, domestically produced solar components.
Expansion plans and future growth
The Tirunelveli facility is a key part of Tata Power's broader strategy to strengthen its position in the renewable energy sector. This plant's solar cell production line, now fully operational, complements the existing solar module production line that was commissioned in October 2023. To date, this facility has produced 1,250 MW of solar modules, underscoring its importance in Tata Power's renewable energy portfolio.
The planned increase in production capacity further evidences Tata Power's commitment to expanding its renewable energy capabilities. Over the next 4-6 weeks, the company aims to add 2 GW of capacity, bringing the total to 4 GW.
Tata Power's longstanding presence in the solar industry
Tata Power's journey in the solar industry is not new. The company has been at the forefront of renewable energy initiatives for decades. In addition to the Tirunelveli plant, Tata Power operates a manufacturing facility in Bengaluru, Karnataka, established in 1992. This facility has a production capacity of 682 MW for solar modules and 530 MW for solar cells. Over the years, Tata Power has supplied a total of 3.73 GW of solar modules and 2.26 GW of solar cells, making a significant contribution to India's renewable energy landscape.
Boosting local economies through strategic partnerships
Beyond its renewable energy projects, Tata Power has also been instrumental in supporting local economies. In Odisha, Tata Power's joint ventures with the state government have placed orders worth ₹8,690 crore with local MSMEs and ₹2,791 crore with non-MSMEs. These contracts, awarded over the past three years, have provided a significant boost to local contractors and suppliers, further cementing Tata Power's role as a key player in India's economic development.
Key takeaways
For those looking to invest in stocks, Tata Power’s recent advancements in renewable energy and its strong market presence make it an effective option.
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