India's largest power company turns to renewables
Facing a shortage of coal, Tata Power, India's largest private power utility, said it plans to increasingly invest in renewable energy.
The Wall Street Journal reports that the company plans to generate 6,000 megawatts of energy from renewable sources by 2020. Currently, the company generates more than 6,000 MW of its total 6,899 MW capacity from coal, the rest is from renewables. WSJ says:
In a bid to fast-track the capacity addition, Tata Power is in talks with many companies whose core business isn't power generation to buy their wind and solar power assets set up to obtain tax incentives, Mr. [Rahul] Shah [Chief Business Development, India Business & Renewables at Tata Power Company] said.
"The financial market is stressed and their [the companies'] core business needs cash. They are seeing if they can monetize non-core businesses," Mr. Shah said.
The company will focus on building a portfolio in order to attract investors as its renewable growth plans would require funds.
India's government is also on board with the shift to more renewable energy. Using tax incentives, the country looks to increase its overall renewable capacity from 6 percent to 15 percent by 2020.
Still, India generates more than half of its electricity by burning coal.
Tata Power Eyes Renewable Energy for Growth [The Wall Street Journal]
Photo: Flickr/Asian Development Bank
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This post was originally published on Smartplanet.com