Tata Power & ADB Partner on $4.25B Clean Energy Projects

Tata Power and the Asian Development Bank (ADB) have signed an MoU (memorandum of understanding) to finance clean energy projects in India, totaling an estimated $4.25 billion. The collaboration focuses on supporting renewable energy projects and strengthening the nation’s energy infrastructure. 

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The agreement will enable the financing of several critical ongoing projects. The projects include a 966 MW solar-wind hybrid project, pumped hydro storage project, and advancements in battery storage, decarbonisation and energy transition technologies. ADB, a multilateral development lender based in Manila, will also provide funding for capital expenditure to enhance the distribution networks managed by Tata Power.

This announcement comes during the ongoing COP29 climate conference in Baku, Azerbaijan, which focuses on strengthening India’s power infrastructure and advancing renewable and clean energy initiatives. 

Tata Power’s strategic move aligns with India’s ambitious target to achieve 500 GW of non-fossil fuel-based power capacity by 2030. Both solar and wind power, though essential to this transition, face challenges due to their intermittent nature, making energy storage projects, such as battery and pump storage, crucial for providing grid stability.

“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 modernizing our power infrastructure, ensuring sustainable and inclusive growth. These initiatives align with India’s ambitious clean energy goals, contributing to energy security and environmental resilience,” said Praveer Sinha, CEO and managing director of Tata Power.

Suzanne Gaboury, ADB director general for private sector operations, also added, “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.”

The partnership also integrates gender and climate efforts to promote inclusive growth. As part of the initiative, Tata Power and ADB plan to empower women by promoting green technologies and facilitating access to green jobs, further contributing to the country’s sustainable development.

In a recent announcement, the company revealed a partnership with Druk Green Power Corporation Ltd (DGPC) to develop at least 5,000 MW of clean energy generation capacity in Bhutan. This partnership further solidifies Tata Power’s position in the renewable energy sector.

Last year, the company had also announced an investment plan of ₹60,000 crore by FY27, with nearly half of the funds dedicated to renewable energy projects.

In Conclusion

Tata Power is one of India's largest integrated power companies, with its presence across the power value chain. Its operations encompass renewable and conventional power generation, including hydro and thermal energy, as well as transmission, distribution, logistics, and trading. The collaboration between Tata Power and ADB marks a key moment for India’s energy transition. By investing in clean energy and energy storage projects, the company is helping to shape a more sustainable and resilient energy future for the country.