India’s largest solar cell plant by Tata Power begins production; positive impact on shares

Tata Power Company Limited has commenced commercial production of solar cells at its state-of-the-art 4.3 GW solar cell and module manufacturing plant in Tirunelveli, Tamil Nadu, a facility hailed as India’s largest single-location solar cell and module plant. This announcement has positively impacted Tata Power’s share prices, reflecting investor confidence in the company’s strategic expansion in the renewable energy sector.

Boost to India’s Solar Energy Goals

TP Solar Limited, a subsidiary of Tata Power Renewable Energy Limited (TPREL), has begun operations of its 2 GW solar cell production line at the new facility. The plant has already produced 1,250 MW of solar modules since the module line was commissioned in October 2023. The Tirunelveli facility’s ramp-up in production aligns with India’s goal to reduce dependency on imported solar components and enhance domestic manufacturing capabilities.

The remaining 2 GW capacity at the plant is expected to become operational over the next 4-6 weeks, with peak production anticipated within the coming months. The indigenous production of solar cells at this scale marks a significant milestone in India’s journey towards achieving its renewable energy and net-zero targets. The facility, equipped with advanced TOPCon and Mono Perc technology, is set to enhance the efficiency of solar cells and modules, further strengthening India’s renewable energy supply chain.

Tata Power Shares Rise Amid Positive Developments

Following the announcement, Tata Power’s shares showed a positive trend on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). As of September 9, 2024, at 3:30 PM IST, Tata Power’s share price closed at 418.85 INR, reflecting a gain of 1.85 INR or 0.44% for the day. This upward movement indicates investor optimism regarding the company’s renewable energy expansion plans. The stock price opened higher and showed steady gains throughout the day, driven by the news of increased production capacity and Tata Power’s commitment to expanding its solar footprint. The momentum reflects investor confidence in Tata Power’s strategy to lead India’s renewable energy sector and capitalize on the growing demand for clean energy solutions.

Dr. Praveer Sinha, CEO and Managing Director of Tata Power, expressed his optimism for India’s renewable energy future, stating, “The commencement of cell production at our Tirunelveli plant is a significant step towards indigenization in the solar value chain and achieving self-sufficiency. We are committed to making solar power accessible to all and ensuring a bright future for India, powered by renewable energy.”

Investment and Market Strategy

Tata Power has invested nearly ₹4,300 crore in the Tirunelveli plant, which forms a cornerstone of its strategy to dominate the solar rooftop and utility-scale segments. The company currently holds a 20% market share in these segments and aims for further expansion under government programs like PM Surya Ghar Yojana. The modules produced at this plant are already part of the Government’s Approved List of Models and Manufacturers (ALMM). The company is confident that its high-quality solar cells will also be added to the ALMM list for cells, which is expected to be announced soon.

The solar cells and modules produced at the Tirunelveli facility will initially cater to Tata Power’s ongoing projects, further strengthening its supply chain. Looking ahead, the company also plans to explore opportunities for broader market distribution.

Tata Power’s Broader Renewable Energy Vision

In addition to the Tirunelveli plant, Tata Power operates a world-class manufacturing facility in Bengaluru, Karnataka, with a production capacity of 682 MW for solar modules and 530 MW for solar cells. This facility has supplied 3.73 GW of solar modules and 2.26 GW of solar cells to date.

Tata Power is playing a pivotal role in India’s renewable energy sector, aiming to increase its renewable energy portfolio from 41% to 70% by 2030. The company’s aggressive investment in solar cell and module production demonstrates its commitment to becoming a leader in the global energy transition.