The Maharashtra Electricity Regulatory Commission (MERC) has allowed Brihanmumbai Electric Supply and Transport Undertaking (BEST) to extend its existing power purchase agreement (PPA) with Tata Power for 676.69MW for a period of five years.
Tata Power stated that the extended PPA will commence from 1 April this year to 31 March, 2024. Power for BEST will be provided from its Trombay Thermal and Hydro plants.
MERC, after due diligence to ensure power supply reliability and cost competitiveness for BEST consumers in Mumbai, has approved the extension. The order has been given after BEST inter alia submitted that the cheapest option before BEST is the extension of its present PPA with Trombay Thermal Power Station and Hydro plants of Tata Power.
The two companies have agreed to extend the PPA with existing terms and conditions. The existing power tie-up between the two is set to expire on March 31, this year.
Tata Power CEO and managing director Praveer Sinha said: “Tata Power is committed to supplying the most reliable and competitive power meeting the needs of BEST consumers, as always.”
The PPA extension is expected to provide cheaper power to consumers in Mumbai with an added advantage of hydro peaking power at one of the cheapest prices in the country.
In November last year, Renascent Power Ventures, a subsidiary of Resurgent Power Ventures, had agreed to acquire 75.01% stake in Prayagraj Power Generation Company Limited (PPGCL), which owns and operates a 1,980 MW supercritical power plant in the state of Uttar Pradesh, India.
Resurgent Power is a joint venture between Tata Power International (TPIPL), a subsidiary of the company, ICICI Bank and other global investors including Kuwait Investment Authority, State General Reserve Fund, Oman. Tata Power holds 26% stake in the joint venture and the remaining 74% is owned by ICICI Bank and other global investors.
As one of India’s largest integrated power companies, Tata Power along with its subsidiaries & jointly controlled entities, has a total installed capacity of 10.8GW.
With renewable energy assets in solar and wind accounting for 22% of the company’s portfolio, Tata Power is also a major player in clean energy generation.