Torrent Power Eyes Expansion Through New Acquisitions & Bids

The annual report of Torrent Power reveals that the company is looking to expand its renewable energy portfolio by the way of fresh acquisitions of existing projects. Torrent is also keen to enter the sectors of transmission and distribution through privatization and franchising.

The total power producing portfolio of Torrent currently stands at 4,975 MW which includes both existing and under-development projects. Out of the total, 2,730 MW is gas-based, 663 MW solar, 1220 MW wind and 362 MW coal-based projects.

Samir Mehta, Chairman, Torrent Power says that twin challenges of coal shortages and Russia-Ukraine conflict has adversely impacted the power sector in India. Hence, India should be moving fast towards clean energy sources in a quest to find a sustainable future. Rising prices of fossil fuels across the globe is also nudging countries to look into investing in renewables.

Mehta held, ”We aim to increase our renewable portfolio through new bids or acquisitions in the coming years… we are firmly placed to take your company (Torrent Power) forward on a path of financial progress and a sustainable future.”

He said, ”In the first half of the year (2021-22), we saw a growth in power demand of around 12 per cent, highest in the decade. However, the growth trajectory soon derailed due to supply constraints of coal accompanied by high fuel prices of coal and gas. The Russia-Ukraine conflict and economic sanctions on Russia further impacted the situation.”

Torrent is not building any coal or gas-based power project. The company informs that solar and wind power under construction by Torrent remains 400 MW and 415 MW respectively.

The Chairman added, ”The (electricity) rates were so high that the (power) regulators had to intervene and cap power prices. The successive waves of the COVID-19 pandemic throughout the year heightened business continuity concerns.”

In April, Torrent had declared the acquisition of a 50 MW solar power plant in Telangana from SkyPower Group against a consideration of Rs 417 crore through a share purchase agreement.