Tata Power, Clean Energy and IFC InfraVentures to develop projects in Georgia for power sale to Turkey/Europe electricity market
Monday, May 20, 2013
Tata Power, India's largest integrated power company, through its subsidiary Tata Power International, has signed an agreement with Clean Energy Invest AS (Clean Energy) and IFC InfraVentures (IFC) for developing hydro projects in Georgia for sale of power primarily to Turkey.
The hydro projects will be of an aggregate capacity of 400MW and would be developed in three phases. The first phase of 185MW is expected to be completed before mid 2016. Tata Power and Clean Energy would hold 40 percent stake each. The power generated by the projects is planned to be vended primarily to Turkey. The total project cost is estimated to be about $700 million.
While signing the agreement, Anil Sardana, managing director, Tata Power, said, “We are delighted to be broadening our foothold in key international markets through this development. Georgia is a great country to work in and Turkey is a fast evolving energy market in Europe. This relationship with Clean Energy and IFC puts us on a strong footing to take advantage of the considerable potential of this market. We are proud to be the pioneers in hydro generation in India, with a century of operating experience and will continue to look at the prospective of enhancing our clean energy portfolio.”
Tata Power has an existing hydro generation capacity of about 450MW in Maharashtra, India, that feeds clean power to the city of Mumbai. The company has also increased its portfolio in hydro power generation which includes a partnership with Norway-based SN Power to develop hydropower projects. The joint venture consortium has bagged the Dugar Hydro Electric Project in Chenab Valley in Himachal Pradesh, India.
Tata Power also has a joint venture with the Royal Government of Bhutan, under which it is implementing a 114MW from Dagachhu Hydro Project with Druk Green Power Company.
The company, as part of its sustainability initiatives, is committed to reducing its carbon footprint through focus on clean and renewable energy generation. Apart from the hydro power portfolio, the company has also recently enhanced its renewable energy portfolio internationally through its South Africa joint venture with Exxaro called Cennergi, which has been shortlisted as preferred bidder for two wind projects of 234MW – 139MW at Amakhala and 95MW at Tsitsikamma. Tata Power remains committed to generating 20-25 percent of its total generation capacity from clean energy sources.
Source: Tata Power