According to reports, Tata Power Company today said it has completed the acquisition of US-based AES Corporation’s arm AES Saurashtra Windfarms, which owns an operates a wind energy farm of 39.2 mw capacity in Gujarat.
The Tata group’s power utility has entered a share purchase agreement with the company in October 2013. The acquisition is done through Tata Power’s green energy arm Tata Power Renewable Energy for an undisclosed amount. Analysts estimate the deal may be worth around Rs 150 crore.
“Tata Power endeavours to generate 20-25% of its total generation capacity from clean energy sources and is proud to have completed this acquisition of the 39.2 mw operational wind farm. The project is a clean energy project, which will enhance and increase the company’s clean energy footprint,” Anil Sardana, managing director, Tata Power, was quoted as saying in a press release. The acquisition comes at a time when Tata Power has taken a deliberate decision to hold its expansion plans in the thermal power sector in India given the multiple problems faced by the beleaguered sector. With this acquisition, Tata Power’s total generation capacity now stands at 8,560 mw. The company aims to reduce its carbon footprint and intends to have a 20-25% of its generation from clean power sources.
The project is registered with United Nations Framework Convention on Climate Change as a Clean Development Mechanism project and is eligible to receive carbon credits. The project is also registered to get generation based incentives under scheme of Ministry of New and Renewable Energy.
AES Saurashtra Windfarms commissioned its wind farm near Dwarka in Jamnagar district of Gujarat in January 2012. The project has a power purchase agreement with Gujarat Urja Vikas Nigam for sale of the electricity at a tariff of Rs 3.56 for every unit.
The sale of wind farm by AES Corporation of US, is a part of its strategy to scale down its operations in the country and to restrict its presence to its Orissa power unit. The company had entered India in 1998 with ambitious plans but local issues like land acquisition, approvals and fuel availability changed its capacity expansion plans.
Tata Power was selected as the preferred bidder in a process conducted by AES Corporation for sale of its 100% stake in ASW.