Tata Power’s Renewable Arm to Sell 32MW Wind Assets in Maharashtra

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However, the company did not disclose the buyer of these assets.

With an aim to optimize operating costs, Tata Power Renewable Energy Ltd (TPREL), a renewable arm of utility giant Tata Power, has entered into a pact to sell its 32 MW operating wind assets in Maharashtra.

India’s one of the leading integrated power company said in a statement that, “Its wholly subsidiary Tata Power Renewable Energy Limited (TPREL) has signed a binding agreement to sell its 32 MW operating wind assets located in Satara District, Maharashtra.”

However, the company did not disclose the buyer of these assets.

It further added that, the parties are currently executing conditions precedent defined under the agreement.

Post completion of the conditions precedent, the assets and liabilities pertaining to the said project would be transferred to the Buyer.

Commenting on this deal, Tata Power, CEO & MD, Praveer Sinha said, “Tata Power Renewable Energy Limited has executed a binding agreement to sell its 32 MW wind project in Maharashtra. This is part of our effort to restructure our portfolio to concentrate on building scale in few locations and venturing out of small, isolated sites thereby optimising our operating costs. We will grow capacity both by organic and inorganic route”.

In another significant development, the company has recently made it publicly clear that it will cease building new coal-fired capacity, as per the report released by the Institute for Energy Economics and Financial Analysis (IEEFA).

The report highlighted the company’s long-term strategy that will see renewable energy dominate its power capacity build-out going forward.

Tim Buckley, IEEFA’s Director of Energy Finance Studies and co-author of the report, notes that Tata Power’s shift mirrors the transition underway within the Indian power sector as a whole, driven by least-cost renewable energy.

Meanwhile, majority of the company’s thermal capacity is now centered on its Mundra coal-fired power plant – one of the biggest power plants in India – which experienced losses reaching USD 191 million for the first three quarters of FY 2018-19.