Tata Power to Begin Solar Equipment Exports to Europe Amid EU's China Diversification

Tata Power is planning its first exports of solar cells and panels to Europe, seeking to capture market share as the European Union diversifies its supply chain away from China. CEO Praveer Sinha announced the move on Monday, stating the company sees an opportunity to export 2-3 gigawatts (GW) to a single, unspecified European country.

A Strategic European Push

This initiative marks a significant strategic pivot for Tata Power, which has not previously exported solar equipment to the continent. During a post-earnings media call, Sinha highlighted the potential for a substantial supply agreement, though he did not provide further details on the target market or a specific timeline.

The move aligns with a broader trend of Indian solar manufacturers looking toward Europe. An India-European Union trade deal signed earlier this year, which reduced tariffs on most goods, has further improved the economic viability of such exports.

EU Seeks Supply Chain Alternatives

Tata Power's export plans come as the EU actively works to reduce its dependence on Chinese renewable energy components. This effort is formalized under the bloc's Net-Zero Industry Act, which has already prompted countries like Italy to open their markets to projects using non-Chinese equipment.

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The scale of the EU's reliance on imports is significant:

• More than 95% of solar modules installed in the EU are imported.
• In 2023, China supplied approximately 94% of the bloc’s solar modules and cells, according to consultancy firm Green Horse Advisory.

India's Growing Production Capacity

Tata Power is well-positioned to meet potential European demand with a current manufacturing capacity of 4.9 GW for integrated cells and modules. The company also has plans to build capacity for up to 10 GW of solar ingots and wafers, further strengthening its production capabilities.

On a national level, India possesses nearly 200 GW of module-making capacity and about 30 GW of cell capacity, according to government estimates. This industrial base positions the country as a key potential partner for Europe in its energy transition.