Tata Power, India’s largest private sector integrated power company announced on Monday 11th June 2018 that its 100% subsidiary Tata Power Renewable Energy Limited (TPREL) won a 150MW Solar PV Project on a long-term basis in Maharashtra.
This project is a part of the Maharashtra State Electric Distribution Co. Ltds. (MSEDL) 1000MW grid-connected solar power projects for which the MSEDL had invited bids through the competitive bidding process and e-reverse auction for a period of 25 years.
TPREL received the Letter of Award to develop the project and is going to sign the 25year Power Purchase Agreement (PPA) with the MSEDCL. The PPA signed will be subject to the approval of the Maharashtra Electricity Regulatory Commission (MERC) with applicable tariff.
“We aim to make the country self-sufficient in energy generation and be a support to attain world leadership in this sector. TPREL comprises Tata Power group’s renewable energy portfolio and is targeting 30-40% generation capacity through clean energy sources. To achieve this goal, we are evaluating clean and green energy projects which are in line with our core business value of sustainable growth & returns to the shareholders and will further enhance and increase our clean energy footprint,” said Mr. Ashish Khanna, President-Renewables, Tata Power in a statement released by the company. Incidentally, in the recent past, the group’s financial results have been buttressed by the solid performance of the renewables portfolio, which has delivered profits as compared to the larger thermal portfolio which has struggled due to multiple causes, from high coal prices to low plant load factors.
Tata Power expects 35-40% of the company’s total generation capacity to come from non-fossil fuel sources by 2025. Currently, Tata Power’s renewable energy capacity has crossed 2000MW and its overall green generation portfolio has crossed 3400MW.
The company is also in the process of implementing 121 MW of renewable power projects at various locations on greenfield basis. In order to aggregate its clean and renewable energy portfolio, Tata Power has initiated the process of carving out its 380 MW clean energy assets from its books into TPREL. TPREL’s portfolio should grow to about 2.2 GW making it a leading Renewable Energy Company in India.
“Renewables is a focus area for us and we are looking at expanding in the renewables space, especially in Solar. As we move forward, with the new technology coming in, we expect to do further improvement in the PLFs, and also in the returns in renewable business. So that’s a core area that Tata Power is looking at, and I’m sure in a very near future we will attain and maintain the leadership position,” said Mr Praveer Sinha, CEO & Managing Director, Tata Power.