India’s Tata Power to carve out 500-MW portfolio to renewables arm
Wind park in India. Featured Image: Regien Paassen/Shutterstock.com
Indian utility group Tata Power Co Ltd (BOM:500400) on Monday announced a plan to carve out 500 MW of assets to its renewable energy-focused subsidiary, thus expanding the unit's portfolio to 720 MW.
More specifically, the company will transfer 376.5 MW of wind assets and 120 MW of waste heat recovery-based power plants along with a 3-MW solar array to Tata Power Renewable Energy Ltd (TPREL). The latter already owns 158 MW of wind farms and 54 MW of solar parks that are in operation and also has 250 MW of projects in the construction phase.
“We aim to create a focused clean and renewable energy business in TPREL with its own growth trajectory,” said Anil Sardana, CEO and managing director of Tata Power.
The planned transfer of assets will also allow TPREL to tap different and competitive sources of capital to fund its growth plans, Tata Power added. The renewables business will pursue an expansion both through organic and inorganic means over the next few years.
The group noted it will be using TPREL as the primary vehicle through which it is to meet its objective for clean energy sources to account for 20%-25% of its total generation capacity.
The proposed restructuring of Tata Power’s renewable energy assets is pending corporate and regulatory nods.