Tata Power signs share purchase agreement for acquisition of a 39.2MW wind farm in Gujarat
Wednesday, Oct 09, 2013
Tata Power Renewable Energy (TPREL), a 100 percent subsidiary of Tata Power, India’s largest integrated power company, has today signed a share purchase agreement (SPA) for acquisition of 100 percent shareholding in AES Saurashtra Windfarms (ASW), a 100 percent subsidiary of AES Corporation.
ASW owns and operates a 39.2MW wind farm near Dwarka in Jamnagar district of Gujarat. The project, which is fully operational since January 2012, has executed a power purchase agreement with GUVNL for sale of electricity at a tariff of Rs3.56/kWh for the duration of the project. The project is registered with the United Nations Framework Convention on Climate Change (UNFCCC) as a Clean Development Mechanism (CDM) project and is eligible to receive CERs. The project is also registered under the Generation-based Incentive Scheme of MNRE.
TPREL was selected as the preferred bidder in a process conducted by AES Corporation for the sale of its 100 percent stake in ASW. The acquisition is subject to certain conditions, which are expected to be addressed in a few months' time.
With this acquisition, Tata Power’s total generation capacity will increase to 8,560MW and its wind operational generation capacity to 437MW with WTGs located across five states, Maharashtra, Rajasthan, Gujarat, Tamil Nadu and Karnataka, which are leading states in promoting wind power generation in India.
Speaking on achieving this milestone, Anil Sardana, managing director, Tata Power, said, “Tata Power is committed to generating 20-25 percent of its total generation capacity from clean energy sources and is proud to have signed this SPA to acquire the 39.2MW operational wind farm. The project is a clean energy project, which will enhance and increase the company’s clean energy footprint. This is our second acquisition of an operating wind asset and we are constantly looking out for similar opportunities with respect to wind and solar plants. This is yet another step towards the company's commitment to sustainability."
The company’s strategy emphasises the development of clean energy generation from non-fossil fuel and renewable energy sources to balance the carbon emissions from fossil fuel-based generation capacity while contributing towards the energy security of the country.
Tata Power currently has four of its renewable energy projects registered under the CDM programme of UNFCCC. These projects include a 50.4MW wind project at Gadag, a 50.4MW wind project at Khandke and a 50.4MW wind project at Samana, in Maharashtra. The fourth project is the 25MW solar project at Mithapur, Gujarat.
Source: Tata Power