Tata Power, ADB Seal $4.25Bn Deal To Finance 966 MW RE Projects In India

Tata Power, ADB Seal $4.25Bn Deal To Finance 966 MW RE Projects In India

Tata Power, an integrated power company, and the Asian Development Bank (ADB) recently signed a Memorandum of Understanding (MoU) coinciding with the ongoing Climate Conference (COP29) at Baku, Azerbaijan. This deal evaluates financing for its several projects and to enhance India’s power infrastructure, and promote renewable and clean energy. 

The MoU outlines the evaluation of financing for several key ongoing projects such as the 966 MW Solar Wind Hybrid project and Pumped Hydro Storage Project and other projects in the pipeline around energy transition, decarbonization, and battery storage as well as ongoing financing for capex towards strengthening the distribution networks managed by Tata Power. The total estimated project cost is approximately US $4.25 billion.  

Projects Under Evaluation

The projects under evaluation, such as the large-scale solar-wind hybrid systems and advanced hydro storage solutions, signify an investment in the future of India’s clean energy infrastructure. Through initiatives like these, Tata Power aims to strengthen the nation’s capacity for renewable energy, reduce dependency on fossil fuels, and foster a sustainable, energy-secure future. This MoU signals a concerted effort to align with global climate action goals while addressing India’s unique energy needs. 

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Praveer Sinha, Chief Executive Officer (CEO) and Managing Director (MD), Tata Power said, “Our collaboration with the Asian Development Bank is a crucial step as we explore innovative financing solutions to drive transformative power sector projects.” The signatories will also work to build resilience, promote inclusiveness, and specifically focus on integrating gender and climate actions to empower women as economic and transformative agents in deploying green technologies and accessing green jobs.

ADB Director General for Private Sector Operations Suzanne Gaboury said, “ADB is committed to fostering partnerships that promote sustainability and energy security across Asia and the Pacific. As part of this strategy, our engagement with Tata Power reflects a shared vision for a low-carbon, inclusive, and climate-resilient future, supporting India’s transition toward sustainable energy solutions.”

All Eyes On Baku

As COP29 concludes, ADB’s latest initiatives align with the growing focus on clean energy financing, a central topic of debate at the recent COP in Baku. A note from IEEFA highlights that global investment in renewable energy has been steadily rising. This underscores its growing appeal among investors.

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According to various estimates, investments in the renewable sector have recently increased from US$329 billion–US$424 billion in 2019 to US$570 billion–US$735 billion in 2023—a significant jump of 73%–78% over this period. However, achieving the tripling renewable energy goal would require annual US$1 trillion–US$1.5 trillion investments between 2024 and 2030. This leaves an annual funding gap of approximately US$400 billion, posing a critical challenge for the global energy transition.