Tata Power looks forward to expand its generation capacity by 849.2 MW

Tata Power, one of India’s largest private-sector power generators, has a gross installed capacity of approximately 8,560 MW through thermal, green energy and waste gases of which, as at February 28, 2014, 7,647 MW comes from thermal power sources and 912 MW from green energy sources. In addition, Tata Power is in the process of executing a number of power plant projects, which, upon completion, are expected to increase the Company’s overall generation capacity by 849.2 MW.

Tata Power has eight projects under execution under solar, wind, hydro and gas based projects in India and overseas which are as follows:

Wind Projects:

Tata Power has entered into Power Purchase Agreement (“PPA”) with Tata Power Renewable Energy Limited (“TPREL”) for purchase of wind energy from the 32 MW wind energy project located at Ambheri, in the Satara district in Maharashtra. The project is currently under execution and is expected to be commissioned in Fiscal Year 2014.

The Company entered into a PPA with TPREL on January 16, 2014 for purchase of wind energy from the 49.5 MW wind energy project being developed by TPREL for generating and selling renewable electrical energy to the beneficiary entities. The PPA shall commence from June 01, 2014 and remain effective up to May 31, 2027. This project currently under execution and is expected to be commissioned in Fiscal Year 2015.

Tsitsikamma is a 94.8 MW wind power generation project currently under execution in South Africa and is expected to be commissioned in Fiscal Year 2017. Tata Power is developing this project through its joint-venture company, Cennergi (Pty) Limited (“Cennergi”). As on December 31, 2013, Tata Power holds 50 per cent share and Exxaro Resources Limited holds another 50 per cent share in Cennergi. A PPA has been signed with Eskom Holdings SOC Limited (“Eskom”) for sale of power for a period of twenty years from the date of commencement of commercial operations.

Amakhala Emoyeni is a 134.4 MW wind powered generation project, located approximately 14 kilometers south west of the town of Bedford in the Eastern Cape, expected to be commissioned in Fiscal Year 2017. Tata Power is developing this project through its joint-venture company, Cennergi. A PPA has been signed with Eskom for sale of power for a period of twenty years from the date of commencement of commercial operations.

Solar Project:

Tata Power has entered into a PPA with TPREL for purchase of solar energy from the 25 MW AC Solar Plant located at Palaswadi, Maharashtra. The PPA has been entered into for a term of 25 years commencing from March 31, 2014. The project is currently under execution.

Hydro Projects:

The Dagachhu Hydroelectric Power Project (“Dagachhu Project”) is a joint-venture wherein Tata Power holds 26% stake as at December 31, 2013. The Dagachhu Project is proposed to have an installed capacity of 126 MW and is being implemented in Bhutan by Dagachhu Hydro Power Corporation Limited. On June 25, 2008, Dagachhu Hydro Power Corporation Limited entered into a PPA with Tata Power Trading Company Limited (“TPTCL”), which was subsequently amended on September 12, 2008, whereby TPTCL shall purchase and import power generated at the Dagachhu Project into India. This PPA is valid for a period of 25 years from the date of commissioning of the Dagachhu Project.

Adjaristsqali Georgia LLC (“AGL”) is developing hydroelectric projects in Southwest Georgia. AGL is a joint-venture company wherein Tata Power is one of the joint venture partner. As at December 31, 2013, Tata Power holds 40% interest in AGL. AGL is expected to export power to Georgia and Turkey.

Gas Based Project:

The Kalinganagar Project is a 202.5 MW cogeneration plant located at Kalinganagar Industrial Complex at Duburi, Odisha, being set up by Industrial Energy Limited (“IEL”). Tata Steel Limited and IEL entered into a MOU on August 30, 2011 for the establishment of the captive power plant for a period of 48 months. Civil work for this project is currently in progress and the project is expected to be fully commissioned in Fiscal Year 2015. A PPA between IEL and Tata Steel Limited is under negotiation.

Speaking on the development, Mr. Anil Sardana, Managing Director, Tata Power stated- “As one of the largest private sector power generators in India, we have a strong track record of successfully implementing large and complex projects across the power sector. Today, we are an established power generation group with a strong track record and extensive industry experience. This has helped us to identify new opportunities and plan expansions across our generation assets. We believe that our presence across the value chain provides us with advantages over competitors as the Indian electricity market continues to privatise, liberalise and evolve.”