Monday, October 07, 2013: Tata Power is working towards fulfilling its board’s mandate to generate 20-25 per cent of power from clean energy sources. Rahul Shah, chief-business development, Indian business and renewables told DNA, that to achieve the goal, they are criss-crossing the country hunting for operating wind and solar assets.
“We are looking at acquiring operating assets in wind and solar. There are wind and solar farms that have been set up by other developers. Today, because of stressed market conditions, they don’t want to be in this business any longer and want to exit, so we are evaluating some such opportunities,” Shah told DNA.
While the company is talking to a number of players, Shah refused to reveal more information. According to him, a new wind farm could cost nearly Rs 60 million per mega watt (mw) whereas a new solar plant would cost Rs 80 million per mw.
“We are looking at solar assets ranging from 5 mw to 25 mw, difficult to say which one we will finally close. It depends on the quality of the project. I would not say we are limited by the budget. If we get a good opportunity, we will find money to invest,” Shah added.
Tata Power reportedly functions a wind plant network that has a combined capacity of 400 mw spread across five states of Maharashtra, Gujarat, Tamil Nadu, Karnataka and Rajasthan. And it is working on a new facility with 180 mw capacity, out of which 50 mw will most likely be commissioned this year.
The company plans to add 150-200 mw wind and 30-50 mw of solar power every year. Shah said, “We will have an IPO when we have a critical mass of renewable assets. It may not come next year. The critical mass would be somewhere around 400-500 mw capacity.”
