Tata Power & Reliance Power bet big on renewable energy, to spend Rs 1,500 cr each

According to reports, two of the country’s largest power producers Tata Power and Reliance Power are betting big on renewable energy and will spend about Rs 1,500 crore each on clean energy projects this fiscal.

While Reliance Power has big plans in the renewable energy segment with a special focus on solar, Tata Power said that all the new capacity that it is planning to add over the next two years, close to 800 MW, comprises clean energy projects in the wind, hydro, solar and waste-gasses space.

“Renewable energy is absolutely key for us, in fact we are the only utility in India to voluntarily say that 20-25 per cent of our asset capacity base will always be in the clean energy space, also our entire new capacity addition of 800 MW that will come online over the next two years is in the renewable space,” said Anil Sardana, MD & CEO, Tata Power.

“We have already crossed the 500 MW milestone of renewable energy generation in India and our new projects are slated to come up in Gujarat, Maharashtra, Bhutan, South Africa and Zambia over the next two years,” he added.

Tata Power also said that it’s the only private utility to voluntarily declare that 20-25 per cent of its total installed capacity will be in the green energy space. Reliance on the other hand said that it has already finalised renewable energy projects of about 200 MW for the current fiscal and is keenly looking at upcoming opportunities to enlarge its renewable portfolio.

“With an operating renewable portfolio capacity of close to 100 MW and 125 MW nearing completion, the company has laid out grand plans to play a dominant role in the renewable energy segment,” said Reliance Power in a statement to ET.

“As rightly indicated by the new Central Government, the renewable energy space will have to be developed, if issues such as ever increasing demand supply gap for power, limited sources of fossil fuel and dependency on imported fuel are to be addressed. Reliance Power is confident that environment is now ripe to provide a big thrust to the renewable energy space in particular to solar PV projects,” the company added.

This comes at a time when the the ministry of new and renewable energy (MNRE)plans to set up giant solar projects in Rajasthan, Gujarat, Ladakh and Kargil. This is a part of the government’s target of achieving 20,000 MW of solar capacity by 2020.

“Reliance Power is keen to be a part of the journey to position India as one of the world’s major solar power producers in the coming years. Given the exciting new opportunities such as the ultra mega solar PV projects and the shortfall in meeting the renewable purchase obligations by various state discoms,” said the company.

Budget proposes schemes to promote use of clean energy

According to reports, to promote use of clean energy, the government plans to launch multiple schemes including on solar pumps and solar energy parks near irrigation canals in the current financial year.

Besides, the government would provide assistance for developing around 3,770 MW of grid connected renewable energy capacity.

These proposals, spelt out in the union budget 2014-15, would be taken up by the New and Renewable Energy Ministry which has a plan outlay of Rs 5,519 crore for this fiscal.

This amount includes Internal and Extra Budgetary Resources (IEBR) of Rs 3,000 crore and Rs 1,578 crore from National Clean Energy Fund.

“It is also proposed to launch new schemes on solar pumps, solar energy parks and schemes on solar parks near irrigation canals. It also includes provision of central financial assistance for Scheduled Caste beneficiaries,” said the budget document.

The Ministry would provide assistance for developing wind, small hydro and solar projects among others.

Renewable energy initiatives for urban, industrial and commercial applications such as deployment of solar thermal systems, promotion of energy-efficient buildings and master plans for solar cities would be carried out by the Ministry.

Further, renewable energy would be utilized for “construction of 1.10 lakh family-type biogas plants and start of a new programme on cook stoves,” the document said.