In the state of Rajasthan, Indian electric utility Tata Power Co Ltd (BOM:500400) plans to invest INR 1.2 trillion (USD 14.32 billion/EUR 12.89 billion) in new projects, one of which would be the installation of 10 GW of renewable energy capacity.
Regarding the suggested 10-year investment, the firm and the state government have inked a Memorandum of Understanding (MoU), it announced on Monday.
The funds will specifically be used for the creation of renewable energy projects, the establishment of a photovoltaic (PV) module factory, the installation of rooftop solar panels, and the installation of electric car charging stations. The plan also calls for building a nuclear power plant and making investments in transmission and distribution infrastructure.
The installation of around 6 GW of solar and 4 GW of hybrid renewable power plants throughout the state’s districts of Bikaner, Jaisalmer, Barmer, and Jodhpur will receive the lion’s share of the projected financing, or about INR 750 billion. The latter will also become home to a 2-GW production base for PV modules, which will be created at a cost of INR 20 billion.
A little over INR 200 billion has been set aside in the meantime to improve the state’s current grid infrastructure and lower energy losses, while another INR 100 billion will go toward transmission systems.
According to Tata Power, the proposed budget for Rajasthan is intended to help the country achieve its 2030 target of 500 GW of installed renewable energy capacity, as well as position the state as one of India’s foremost hubs for renewable energy. It is anticipated that the project will create more than 28,000 jobs in Rajasthan.