Tata Power, one of India’s largest integrated power companies, is teaming up with the state-run Russian Direct Investment Fund (RDIF) to invest up to $1 billion in solar and other renewable energy projects across Russia.
The Russian government established the $10 billion RDIF in 2011 with the aim of making equity investments in high-growth sectors in the Russian economy.
Tata and RDIF plan to contribute an equal amount of $500 million each to the investment.
Details of the future projects have not yet been disclosed but according to an official representative of the Russian Ministry of Industry and Trade, there is a possibility that solar power stations may be built in different regions of the country, particularly in those with the highest number of sunny days. Likely regions include Rostov Oblast in southwestern Russia, the Dagestan and Kalmykia Republics and some other southern regions. In addition, solar power plants will be built in the Far East, Far North, the Baikal region and other remote regions where the use of traditional energy sources is usually more expensive than the use of renewables.
The exact list of Russian regions where solar power plants will be established will be completed at the beginning of 2015.
In the meantime, the Russian government has already promised the investors tax incentives and other benefits for the project.
RDIF CEO Kirill Dmitriev praised Tata Power’s rich expertise in the solar industry and other renewable energy sectors and did not rule out the possibility of implementing joint projects in India.