This Article is From Oct 08, 2013

Tata Power to acquire AES Corp's wind farm in Gujarat

Tata Power to acquire AES Corp's wind farm in Gujarat
New Delhi:

Tata Power today proposed buying out a wind project from AES Corp in Gujarat and said it is on "constant look out" for acquisition of operating assets in wind and solar segments.

The leading private power utility would acquire 39.2 MW wind energy project in Gujarat for an undisclosed amount. Tata Power's wholly-owned subsidiary Tata Power Renewable Energy Ltd would acquire AES Saurashtra Windfarms Pvt Ltdn(ASW), which is a fully-owned subsidiary of AES Corp.

Both entities have entered into a share purchase agreement in this regard, Tata Power said in a statement.

"The project is a clean energy project, which will enhance the company's clean energy footprint.

"This is our second acquisition of an operating wind asset and we are in constant look out for similar opportunities in respect of wind and solar plants," Tata Power managing director Anil Sardana said.

The company aims to have 20-25 per cent of its power generation capacity from clean energy sources and is proud to have signed the share purchase agreement to acquire the 39.2 MW operational wind farm, he added.

ASW owns and operates a 39.2 MW wind farm near Dwarka innJamnagar, Gujarat. The project, operational since January 2012, has a power purchase pact in place with Gujarat Urja Vikas Nigam Ltd (GUVNL) for selling electricity at a rate of Rs 3.56 per unit.

Tata Power Renewable Energy was selected as the preferred bidder in a process conducted by AES Corp for the sale of this wind energy project.

"With this acquisition, Tata Power's total generation capacity will increase to 8,560 MW and its wind operationalgeneration capacity to 437 MW...," the statement said.

Currently, Tata Power has four of its renewable projects registered under the Clean Development Mechanism (CDM)programme of United Nations Framework Convention on Climate Change (UNFCCC).