TEPCO, Chubu Electric JV enters India’s renewable energy market

A joint venture between a unit of Tokyo Electric Power Company Holdings Inc. (TEPCO) and Chubu Electric Power Co., two Japanese electric utility companies, is taking advantage of India’s high economic growth and growing electricity demand by entering the renewable energy market in the country.

Jera Co., the joint venture, is set to acquire a 10% stake in Indian renewable power generator ReNew Power Ventures Ltd. for about US$200 million through third-party allocation of new shares in March, and later dispatch an independent director and staff to the firm, the company said.

Jera will secure about 330,000 kilowatts (kw) in generation capacity under the Indian producer, which currently operates solar and wind plants with a combined output of 1.5 million kw, while building new facilities capable of producing about 1.8 million kw.

India has set a target to achieve 100 million kw in solar power and 60 million kw in wind power by 2022, according to Jera.

ReNew Power Ventures, which is expected to take the lead in the country’s capacity increase, is planning to implement a tender offer, probably in about a year.