Tata Power joins hands with Gamesa India to commision wind project in AP

Tata Power Company (Tata Power) and renewable energy firm Gamesa India have entered into an agreement of 100 MW wind turbine project at Nimbagallu in Andhra Pradesh. The 100 MW turnkey project will supply, erection and commissioning of 50 units of wind turbines in Andhra Pradesh by May 2017. Gamesa is further contracted to offer long term operations and maintenance agreement to ensure smooth functioning of the wind farm.Tata Power will use G97-2.0 MW T104 wind turbines, specifically designed for low wind markets for the execution of the project.

Tata Power is currently operating in the power segment. The company has an installed gross generation capacity of 8750 megawatts in India. Its power segment consists of generation, transmission and distribution of electricity. Its presence is spread across various segments of the power sector including fuel security and logistics, generation (thermal, hydro, solar and wind), transmission, and distribution and trading.

Gamesa on the other hand has production centres in main wind energy markets viz. Spain and China, as the global production and supply hub, while maintaining its local production capacity in India and Brazil.The company is also a world leader when it comes to development, construction and sale of wind farms, having installed more than 7000 MW worldwide.

According to the Indian Wind Energy Association, Andhra Pradesh witnessed a rise of 4.43 per cent of the total installation of wind projects to 1038.15 MW as of FY15. The country added 1234.11 MW wind power generation capacity during its 7 months in the current fiscal year as per the Ministry of New & Renewable Energy.

Recently, the deployment of renewable energy transformation was the center of action at the World Climate Summit 2015 held in Paris. Tata Power identified four geographies for driving growth in Africa, South East Asia, the Middle East, SAARC. It also has all clearances and reduces the risk to achieve better returns in future. Tata Power is going to generate 18000 MW capacity which includes 20-25 per cent clean energy by FY22. The strong growth plans towards clean energy will benefit the company as well as shareholders.

Meanwhile, Tata Power also completed upgrading its second transmission line between Kalwa and Salsette for Mumbai. The company upgraded the 8 km route to the transmission line number which would increase the capacity of the line to carry power. It completed the work in a benchmark period of 28 days.

During the first week of December, Tata Power Renewable Energy's (TPREL) wholly owned subsidiary NewGen Saurashtra Windfarms (NSW) was merged in the company. The revenue base of the TPREL and NSW stood at Rs 102.5 crore and Rs 20.32 crore as of Q2FY16.

The share price of Tata Power increased by 1.32 per cent on bourses in early trades and is trading at Rs 65.25 on intraday basis. The share price of the company remained under pressure during the trailing twelve month period. The scrip is focused because of positive sentiment across the sector.