India Inc India Inc: Thursday, 05 April 2012 11:21

Tata Power sets up new energy JV for Africa

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tataIndian energy major Tata Power and South African mining group Exxaro Resources launched a new joint venture (JV) Cennergi to serve the expanding energy markets in South Africa, Namibia and Botswana.

The 50-50 JV was set up through Tata Power’s subsidiary, Khopoli Investments, to create a new cleaner energy company.

Cennergi, based in South Africa, will focus on the investigation of feasibility, development, ownership, operation, maintenance, acquisition and management of electricity generation projects across the region.

The initial project pipeline focuses on renewable energy projects in South Africa and Cennergi's strategy is to create a balanced portfolio of generation assets.

Thomas Garner, CEO of Cennergi, says the group has an aspirational target of 16 GW of installed capacity by 2025. This would include a mix of coal (15 per cent), gas (40 per cent) and renewables (45 per cent).

The aim is for the grid emissions factor of the company to be 0.3 to 0.5 tonnes of CO2/MW, compared to a regional figure of 1.0 tonnes/MW or higher.

The new JV is looking to develop two solar projects totalling 40 MW and three wind projects totalling 274 MW. It also submitted plans for some hydroelectric projects it is hoping to develop in KwaZulu-Natal and the Eastern Cape.

Tata Power, India's largest integrated private power utility, and Exxaro have both excluded certain projects in their existing portfolios from the new venture.

Globally, Tata Power has 5.3 GW of generation capacity in its portfolio and supplies power to 1.7 million customers in Delhi and Mumbai.

Tata Power managing director Anil Sardana said the new JV was consistent with the company’s strategy to pursue growth opportunities for energy development in potential markets.

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