Tata Power buying into clean energy companies

Tata Power aims to source a fourth of its power from renewable energy sources.

The company intends to do this in the next few years and will consider taking part ownership in in companies that develop clean energy technologies said S Ramakrishnan, Executive Director.

“In the past, we have bought stakes in firms involved in developing clean energy and will continue to do so if any significant opportunities prop up in the future,” he said.

Tata Power recently bought into two Australian firms, Exergen Pty Ltd (a 5% stake for US$10 million) and Geodynamics Ltd, Australia's leading geothermal energy explorer (a 10% stake in for US$50 million). Exergen has developed a cost-effective moisture removal process for high moisture brown coal.

Tata Power’s current generation capacity stands at 5,297 MW, of which about 22% comes from clean sources. This January, Tata Power commissioned a 25 MW solar power project in Mithapur, Gujarat.

Ramakrishnan said Tata Power plans to set up 300 MW of solar power capacity by 2017. The company is also looking at solar rooftops on buildings.

Tata Power currently has an installed wind capacity of 375 MW. It plans to add 150 MW every year until fiscal 2015, and is also developing power from waste gases generated during steel-making.