A proposal to this effect has been approved by the district authorities and Rs 17 lakh will be drawn from the Taj Heritage Fund to cover the cost of the installation of the plant, officials said.
The proposal was mulled by the Department of Tourism in view of frequent interruption in power supply to the Taj.
The plant will be set up on the hillock east of the Taj.
Tourism Department official Deepti Vats said the plant would provide power to the Taj, Taj Nature Walk and Shilpagram areas that become dark during power failure in the evening.