Tata Power Renewables aims to quadruple its renewable energy assets from 4.9GW to 20GW over the next five years, after a $525 million investment from a consortium led by BlackRock and including Abu Dhabi’s sovereign wealth fund.
Once cleared, the investment from BlackRock Real Assets and Abu Dhabi’s Mubadala Investment Company is expected to see the first round of capital investment by June 2022 and the remainder of the funds available within the year.
The cash injection comes alongside a streamlining of Tata’s renewable energy businesses. India’s sprawling Tata group encompasses sectors as diverse as tourism and trading, as well as industry and energy.
Once the BlackRock transaction is completed, Tata Power Renewables will house all 4.9GW of Tata Power’s renewable energy interests, which includes 932MW of installed wind power capacity across seven states in India – Maharashtra, Gujarat, Tamil Nadu, Karnataka, Rajasthan, Andhra Pradesh and Madhya Pradesh.
Tata Power Renewables will also be restructured into five businesses: utility scale solar, wind and hybrid generation assets; engineering, procurement and construction (EPC) contracting; solar cell and module manufacturing; rooftop solar; and solar pumps and electric vehicle charging infrastructure.
The grid-connected utility-scale wind and solar projects are expected to offer 25-year fixed-price power purchase agreements to the new company’s “broad-based portfolio of assets”.
The BlackRock-led consortium will eventually own 9.76-11.43% of Tata Power Renewables.
Tata added that the newly formed Tata Power Renewables would have “aggressive growth plans”, targeting a market-leading position in rooftop solar and electric vehicle charging in India, as part of a 20GW target in renewable generation assets.
It described India as one of the world’s largest renewable energy markets with the country’s installed renewables capacity expected to rise from 150GW now to 500GW by 2030.