Tata Power chooses clean energy

India’s largest power utility won’t invest in coal-fired power plants but will go for clean energy projects instead.

Tata Power Company described coal fired projects as “impossible” to develop considering the already high and rising price of coal.

“Why would anyone want to invest at this stage in a coal project?” asked Tata Power Executive Director S. Padmanabhan. “Investment has stopped.”

The Indian government also isn’t supplying enough coal to enable Tata Power’s 1,050-megawatt Maithon plant to reach full capacity, he said.

Tata Group is focusing on new clean energy investments as coal powered projects face fuel shortages in India and environmental hurdles in the U.S. and Europe.

Its overseas clean energy investments include stakes in two geothermal projects in Australia and Indonesia with Sydney-based Origin Energy Ltd. It recently bid for its first overseas wind and solar farms in South Africa with Exxaro Resources Ltd based in Pretoria.

Padmanabhan noted that renewable projects are a better way to expand into new power markets because the investment tends to be smaller, the plants are built faster and costs are usually more uniform globally.

He said it’s impossible to do a coal based project in the U.S. and Europe since climate change concerns could potentially shut plants in the future.