Connect with us

Hi, what are you looking for?

One of India’s leading private sector power companies is the latest to reportedly consider setting up a yieldco.

Clean Power

India’s Tata Power Reportedly Planning Renewable Energy Yieldco

One of India’s leading private sector power companies is the latest to reportedly consider setting up a yieldco.

One of India’s leading private sector power companies is the latest to reportedly consider setting up a yieldco.

Image credit: Pexels

Power generation company Tata Power is reportedly considering setting up a yieldco for the operational renewable energy projects of the company. Tata Power is India’s largest integrated power company and part of the massive industrial conglomerate the Tata Group. The company has multiple subsidiaries including Tata Power Solar and Tata Power Renewable Energy.

Tata Power could pool its operational solar and wind energy projects that are currently owned by its renewable energy subsidiaries to raise funds. The company would use these funds to retire outstanding debt worth almost US$7 billion.

The company is reported to have an operational renewable energy capacity of 2.5 gigawatts with an additional 400-500 megawatts of capacity under development. The operational capacity includes the 1.1 gigawatt of capacity Tata Power acquired from Welspun Energy for US$1.4 billion in 2016.

The reported decision to go for a yieldco (infrastructure investment trust, in the Indian context) by a company like Tata Power shows the strains that the renewable energy developers are facing to raise fresh funds and service their or associated companies’ outstanding debt.

Tata Power Renewable Energy was established in late 2015 when the parent company decided to shift all renewable energy assets into a separate company. There were media reports at that time that the company may eventually be listed at Indian bourses through an initial public offering, or IPO.

The company may thus join its competitors like ReNew Power, Acme Solar Holdings, and Mytrah Energy to consider yieldcos. All these companies have bid for large-scale solar and wind energy projects for raising debt due to the persistent liquidity crunch surrounding several Indian corporates. ReNew Power and Acme Solar Holdings had filed papers with the Indian regulators to launch IPOs but are now reported to have dropped those plans.

While the idea of yieldcos in the Indian renewable energy market has emerged due to desperate conditions of the developers, it may attract investors as renewable energy remains a policy priority for the government.

Check out our brand new E-Bike Guide. If you're curious about electric bikes, this is the best place to start your e-mobility journey!
Appreciate CleanTechnica’s originality and cleantech news coverage? Consider becoming a CleanTechnica Member, Supporter, Technician, or Ambassador — or a patron on Patreon.
Have a tip for CleanTechnica, want to advertise, or want to suggest a guest for our CleanTech Talk podcast? Contact us here.

Written By

An avid follower of latest developments in the Indian renewable energy sector.


You May Also Like

Clean Transport

Technology advances are breaking all kinds of patterns. One notable improvement is more women in automotive workplaces in India. Clean technology is multiplying jobs...

Clean Power

Welcome to another issue of our India x Cleantech series! On a monthly basis, we are pulling news from across clean technology sectors in...


As VinFast,  a Vietnamese EV company, announced its plan to open more than 50 stores across France, Germany, and Netherland at EVS35, the Audi...

Clean Power

Government-owned Hindustan Salts has invited bids for the development of 1 gigawatt of solar power capacity.  Hindustan Salts has floated a tender inviting developers...

Copyright © 2021 CleanTechnica. The content produced by this site is for entertainment purposes only. Opinions and comments published on this site may not be sanctioned by and do not necessarily represent the views of CleanTechnica, its owners, sponsors, affiliates, or subsidiaries.