British power developer Lightsource Renewable Energy (LRE) has signed a deal to invest £2bn for setting up solar plants for up to 3GW of power generation in India.
The agreement will be extending over a five year period and is a part of commercial deals signed between India and the UK during the Indian Prime Minister Narendra Modi’s recent visit to the country.
The commercial agreements have a cumulative worth of £9bn and cover multiple sectors, including insurance services, finance, healthcare and energy.
Lightsource CEO Nick Boyle said: "The government has ambitious plans to electrify India and Lightsource will contribute significantly to that goal.
"India will be a key market for Lightsource in the future."
Lightsource’s commitment is expected to generate £42m in revenue in the country, in addition to creating around 300 job opportunities.
UK-listed Indian firm OPG Power Ventures will also be investing around £2.9bn in the Asian country to set up another 4.2GW of new power projects.
OPG supported projects will include 1GW of solar farms and 3.2GW of thermal and renewable energy projects in Tamil Nadu, a state of India.
Solar Trade Association (STA) is the industry body formed by energy giants in the UK, and has suggested the country needs to strengthen its solar power industry at this crucial moment, since India has set a 100GW target of installed solar power by 2022.
STA external affairs head Leonie Greene said: "While Modi is lining up an anticipated $100bn of global solar business, the UK is pushing most of its solar industry backwards, leaving us at an international disadvantage. It is not too late for our government to get fully behind the British solar industry."