Tata Power has announced that its wholly-owned subsidiary Khopoli has completed the sale of the company’s entire stake in Cennergi Private Limited to Exxaro Resources Limited for ZAR 1,550 million (~$84.25 million) and normal working capital and other adjustments.
Cennergi Private Limited was a 50:50 joint venture between Exxaro, a coal producer in South Africa, and Khopoli, a 100% subsidiary of Tata Power. As per the deal, Exxaro has acquired the 50% shareholding of Khopoli and will now have full ownership of Cennergi.
Cennergi has two wind farms in South Africa, namely, Amakhala Emoyeni (14.4 MW with 95% shareholding) and Tsitsikamma Community Wind Farm (95.3 MW with 75% shareholding). Both projects have a power purchase agreement with the state power company Eskom for 20 years.
Commenting on the sale, Praveer Sinha, CEO and Managing Director, Tata Power, said, “The proceeds from such sale would be re-invested in emerging areas where there is a huge growth opportunity. The company will focus on renewable power, power distribution, and service-led businesses in India, which will bring in greater value and help us align with the emerging consumer needs.”
Tata Power is one of the country’s largest integrated power companies and, together with its subsidiaries, has a total installed capacity of 10,763 MW, according to its portfolio.
Earlier, Tata Power had announced its earnings for the third quarter of the financial year 2020 (Q3 FY20), posting a net profit of ₹2.46 billion (~$34.5 million) during the quarter, up nearly 12% from the same period last year.
According to data released by the Global Wind Energy Council (GWEC), Africa and the Middle East added 894 MW of wind power capacity in 2019, down by 7% from the previous year. The report states that total wind capacity installations in both the regions stood at a cumulative 6 GW and that the capacity is expected to surge by about 10.7 GW in the next five years, driven by installations in South Africa, Egypt, Morocco, and Saudi Arabia.
The council predicted that South Africa would be a leader in the region with another 3.3 GW installed by 2024, thanks to projects under construction and a steady project pipeline of 14.4 GW expected to be installed between 2022-2030.
Rakesh is a staff reporter at Mercom India. Prior to joining Mercom, he worked in many roles as a business correspondent, assistant editor, senior content writer, and sub-editor with bcfocus.com, CIOReview/Silicon India, Verbinden Communication, and Bangalore Bias. Rakesh holds a Bachelor’s degree in English from Indira Gandhi National Open University (IGNOU).