As this company sells off assets to minimize debt and reconstruct their renewables sector, they have also won significant solar capacity in India. This brings their overall capacity to 3,457 MW as India’s renewable and solar industry continues to grow and develop.
Tata Power has recently begun to develop its renewable energy portion of power production. They have been asked to commission a 120 MW solar project in Gujarat, India. As it was just announced from Tata Power and Gujarat Urja Vikas Nigam, this project should be completed in eighteen months. It will also leave Tata Power Renewable Energy at a total of 3,457 MW renewable capacity as India’s largest integrated power company. 2,637 MW of this capacity is operational, while 820 MW are under implementation, such as this project.
Tata Power Renewables won this project in the eighth phase of bidding by GUVNL, who the electricity will be supplied to. This contract is a power purchase agreement for twenty-five years from the beginning of the solar plant’s operation. Overall, the project is projected to generate approximately 300 million units of electricity annually, which will then offset about 300 million kg of carbon dioxide emissions.
“We continue to demonstrate our strong commitment towards renewable energy as well as project development, engineering and execution capabilities. We hope to continue to build on our capabilities, deliver over expectations and create high benchmarks all around.â€
Ashish Khanna; President-Renewables, Tata Power
In late June, Tata Power announced other projects as well. They have committed to a 100 MW solar project in Maharashtra, India. This is just the beginning of the various projects that India has been producing. Their energy initiative has presented plenty of opportunities and favorable agreements that companies such as Tata Power Renewable Energy have been taking advantage of. It is an ideal location for solar in particular, and India’s energy companies are eager to expand into the renewables industry. At the same time, this also makes these companies an ideal investment and an actionable opportunity with their current drive and ambition to acquire solar capacity and build their portfolios.
Tata Power plans to consolidate their renewable energy portfolio into Tata Power Renewable Energy by the end of Q2FY20. Their renewable portfolio includes wind and solar power, and amounts to 26% of the company’s energy generation, although it had fallen slightly in the past fiscal year.
Seems that they are planning on making up for this loss through their new projects and restructuring. The pause in construction and shipments from China also is responsible for some of this slip, but they are now back to work as this has all resumed. They are also selling their non-core assets to aid in debt reduction, which has given them $112 million from the sale of a South African power plant, and $212.8 million for three ships. This seems to be the best plan for them to focus on the renewables and drive their company to success.
