Tata Power concludes acquisition of 39.2MW wind farm in Gujarat
Wednesday, Feb 26, 2014
Tata Power Renewable Energy (TPREL), a 100 percent subsidiary of Tata Power, one of India’s largest integrated power companies, has completed acquisition of 100 percent shareholding in AES Saurashtra Windfarms (ASW), the erstwhile 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 the electricity at a tariff of Rs3.56/kWh for the duration of the project. The project is registered with 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 sale of its 100 percent stake in ASW in September 2013 and signed a share purchase agreement for the acquisition on October 7, 2013. The acquisition was subject to certain conditions, which have now been completed.
With this acquisition, Tata Power’s total generation capacity will increase to 8,560MW and its wind operational generation capacity to 437MW with wind turbines located across five states — Maharashtra, Rajasthan, Gujarat, Tamil Nadu and Karnataka — which are the leading states in promoting wind power generation in India.
Speaking on achieving this milestone, Anil Sardana, managing director, Tata Power, said, “Tata Power endeavours to generate 20-25 percent of its total generation capacity from clean energy sources and is proud to have completed this acquisition of 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 on a constant look out for similar opportunities in respect of 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 energy security of the country.
Tata Power currently has four of its renewable projects registered under the CDM programme by UNFCCC. These projects include a 50.4MW wind project at Gadag, 50.4MW wind project at Khandke and 50.4MW wind project at Samana in Maharashtra. The fourth project is the 25MW solar project at Mithapur, Gujarat.