Tata Power Renewable Energy (TPREL), the renewable arm of Tata Power, has received a letter of award (LOA) to set up 966 MW of round-the-clock (RTC) solar-wind hybrid power project for Tata Steel across select steel plants in India.

The project, with 379 MW of solar and 587 MW of wind power, is scheduled to be commissioned on June 1, 2025.

The RTC power purchase agreement will be executed under the group captive segment, with Tata Steel investing 26% equity in the project.

TPREL will set up the project through its subsidiary TP Vardhaman Surya, the company said in a statement.

The hybrid project will fulfill a significant part of Tata Steel’s green energy requirements in India, mitigating 2,389,160 tons of carbon emissions annually.

The company did not disclose information on the Tata Steel units that will benefit from the RTC project and the project location.

CEO and Managing Director of Tata Power Praveer Sinha said, “Tata Power and Tata Steel are committed to jointly developing green energy solutions. The 966 MW RTC hybrid renewable power project marks a significant step towards our combined efforts to accelerate the adoption of clean and green energy to meet the net zero target”.

With the procurement of the above contract, TPREL’s total renewables capacity stands at 7.7 GW, with 4 GW of operational capacity and 3,697 MW of under-development projects. The operating capacity includes 3,107 MW of solar and 952 MW of wind.

CEO and Managing Director of Tata Steel T. V. Narendran added, “This agreement aligns with our sustainability vision and will contribute to the reduction of carbon emissions associated with our operations. We believe that renewable energy is the future, and this partnership enables us to take one of the steps towards achieving our target of net zero by 2045.”

In March this year, TPREL signed an agreement with Tata Power Delhi Distribution to supply 510 MW of wind-solar hybrid power.

Tata Power’s profit rose 48% year-over-year to ₹9.39 billion (~$115 million) for the fourth quarter of 2023, mainly driven by increased sales across the distribution companies and higher renewable capacity addition.