Tata Power widens renewable energy reach

Tata Power Ltd, India’s largest integrated power utility, has confirmed its buy out of the 51% stake owned by BP Alternative Energy Holding in their joint company, Tata BP Solar.

Tata BP Solar manufactures solar photovoltaic cells and solar modules in India and also exports products. It will continue to access some BP technology until 2013 through a separate agreement.

"We believe the favourable policy environment in India has led to increase in size of the solar module and solar cell market, and is a great opportunity for the company to grow," Tata Power's Managing Director Anil Sardana said in a statement.

BP said it was shutting down its solar unit, which it has been scaling back since 2008, citing continuing global economic challenges that made it difficult to sustain long-term returns.

India plans to build an initial capacity of 1 GW of solar power by 2013, enough to power close to 1 million homes. It would then add 3-10 GW by 2017, and hopes to grow that to 20 GW by 2022.

Tata Power has commissioned a 3 MW solar photo-voltaic plant, which is the largest grid connected plant in Maharashtra state. It is also developing a 25 MW solar project in Gujarat. The construction work is in progress.

Coal currently accounts for 55 percent of India's power generation capacity of 182,344 MW.

Tata Power generates about 3120 MW of power from energy sources like thermal (coal, gas, oil), hydroelectric, solar, wind and geothermal energy.

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