Tata Power, Asian Development Bank Sign Pact To Finance Clean Energy Projects Worth $4.25 Billion
The collaboration with Asian Development Bank will fund strategic initiatives, including a 966-megawatt solar-wind hybrid power project, Tata Power said.
Tata Power Co. has signed a memorandum of understanding with Asian Development Bank to finance clean energy initiatives worth $4.25 billion, according to an exchange filing on Thursday.
The collaboration will fund strategic projects, including a 966-megawatt solar-wind hybrid power project, a pumped hydro storage system, and advancements in battery storage and distribution networks, it said.
The initiatives aim to bolster India’s renewable energy infrastructure and decarbonisation efforts, the filing added.
"Our collaboration with the Asian Development Bank is a crucial step as we explore innovative financing solutions to drive transformative power sector projects. This MoU reinforces our commitment to advancing India's clean and renewable energy capacity and modernising our power infrastructure, ensuring sustainable and inclusive growth," Tata Power's Managing Director and Chief Executive Officer Praveer Sinha said.
The MoU, announced during the ongoing COP29 Summit in Azerbaijan, focuses on building resilience, promoting inclusivity, and integrating gender and climate actions, a release said. Tata Power and ADB aim to empower women as key drivers in deploying green technologies and accessing green jobs, it noted.
"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," said Suzanne Gaboury, ADB's director general for private sector operations.
The partnership between Tata Power and ADB comes in the backdrop of India setting a target to expand its renewable energy capacity to 500 gigawatts by 2030.
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, the release said.
On Thursday, shares of Tata Power closed 0.01% higher at Rs 408.05 apiece on the NSE, compared to a 0.72% decline in the benchmark Nifty 50. It has risen 55.34% in the last 12 months and 22.84% on a year-to-date basis.
Fourteen out of the 23 analysts tracking the company have a 'buy' rating on the stock, one recommends a 'hold' and eight suggest a 'sell', according to Bloomberg data.
