Tata Power Eyes $5.63 Billion Investment in Andhra Pradesh Renewable Projects

Tata Power Renewable Energy Ltd (TPREL) is exploring a major renewable energy expansion in Andhra Pradesh, with plans to develop 7 gigawatts (GW) of solar, wind, and hybrid projects. The initiative, representing a potential investment of approximately $5.63 billion, would mark one of the largest renewable energy investments in the state.

The proposed projects align with Tata Power’s broader strategy to invest up to $9 billion in renewable capacity expansion over the next five years. If realized, this investment could significantly bolster Andhra Pradesh’s role as a green energy leader and support India’s national target of achieving 500 GW of clean energy capacity by 2030.

Andhra Pradesh itself has set an ambitious goal of over 160 GW of renewable capacity, with estimated investment opportunities reaching 10 trillion rupees. However, India faces persistent challenges in meeting its renewable energy ambitions. The country remains behind on its previous goal of achieving 175 GW by 2022, with complex tendering processes and inadequate interstate transmission infrastructure slowing progress. An estimated 40 GW of renewable energy agreements remain unsigned, reflecting these structural obstacles.

TPREL has reiterated its commitment to playing a crucial role in India’s clean energy transition. “TPREL is committed to significantly expanding renewable energy in Andhra Pradesh, contributing substantially to India’s clean energy targets,” the company stated.

India issued a record 73 GW in renewable tenders in 2024, but approximately 8.5 GW went undersubscribed, underscoring the ongoing challenges within the sector. If executed, TPREL’s initiative could help address critical gaps in India’s clean energy infrastructure, accelerating the country’s transition to a more sustainable power grid.