AHMEDABAD: Country's largest electricity distributor Torrent Power Limited is entering the renewable energy sector with wind and solar projects of 50 MW each which would be operational by December, a company source said. The company has already tied up with Enercon for setting up 50 MW wind power project and signed a power purchase agreement with a solar power firm for 50 MW early this year. Torrent Power's tie-ups are expected to attract investments to the tune of Rs 1,000 crore for wind and solar power projects in Gujarat.
Meanwhile, KfW Bank of Germany paid Rs 100 crore to Torrent Power for Certified Emission Reduction that it has been generating since its 1,147 MW gas based SUGEN plant became operational in 2009 in South Gujarat. KfW has issued close to two million CERs to SUGEN project and the cumulative carbon emission reductions between 2009 and 2019 is estimated at 31.89 million tonnes. According sources close to the development, Rs 6,834 crore Torrent Power will garner close to Rs 400 crore a year from CERs. Torrent Power spokesperson did not respond the emailed questionnaire.
Torrent Power caters to over 3 million customers annually in Ahmedabad, Gandhinagar, Surat, Bhiwandi and Agra in three states. Soon it will take over distribution assets in Kanpur city of Uttar Pradesh. According to the market sources, Torrent Power has gas and coal based generation facilities and it has not been able to purchase electricity from renewable resources to meet its obligation, as mandated by the regulator.
"Recently, Torrent Power requested the Gujarat Electricity Regulatory Commission (GERC) to reduce the minimum percentage of renewable purchase obligation target. Torrent Power attempted to invite bids to procure electricity from renewable power developers but it could not attract desirable quantum. As a result, the company has decided to venture into renewable energy arena on its own," said a source familiar with the developments.
According to GERC mandate, the distribution licensee has to purchase electricity to the extent of 5% of the total consumption of its consumers including T&D loss in a year. Torrent Power is projecting to cater 9,805 million units of electricity in its license areas of Ahmedabad-Gandhinagar and Surat.
Torrent Power is expanding its SUGEN power plant as peak demands in Ahmedabad-Gandhinagar and Surat is estimated at 1,650 MW, which is its total generation capacity today. Torrent Power is also commissioning 1,600 MW gas based generation unit at Dahej in South Gujarat. The company is expected to generate significant CERs at its proposed Dahej unit too.
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