Tata Power with big plans on geothermal energy

Tata Power is an investor in Geodynamics, website snapshot

Alexander Richter 29 Mar 2010

Reported from Mumbai, India, “Tata Power, India’s largest private sector utility, has made big plans to generate electricity from geothermal energy in India and abroad and is eying projects to produce 1,500 mega watts, or a big chunk of Indonesia’s geothermal target of 9,500 mw, by 2025.

It is also exploring possibilities in Australia and India, according to senior company officials.

Indonesia’s ministry of energy and mineral resources has issued a list of 92 power projects that would be built under the second phase of an acceleration programme. PT PLN, the government entity overseeing renewable energy drive in the country, would develop 21 power plants, while the remaining 71 would be developed jointly with private companies.

“Tata Power has bid for Sonik Merapi power project in north Sumatra along with a partner from Indonesia, PT Supraco, and plans to be part of all major bids that would come up,” Banamali Agarwala, executive director of Tata Power, said.

The Merapi project would have an initial capacity of 55 mw, which would be gradually increased to 200 mw.

“The cost of developing these projects is close to $2 million-$3 million (Rs 9.10 crore-Rs 13.65 crore) per mw, while the cost of electricity would be in the range of Rs 4-4.5 per unit, which is lower than Rs 17 for solar power, but higher than wind. The power would be sold to PT PLN, which has signed purchasing agreements with concerned bodies,” Agarwala said.

Tata is also looking at opportunities in India and is in talks with Gujarat and Maharashtra governments to explore regions with geothermal potential. Industry officials, however, believe India does not have a resource base that is comparable with those in Indonesia and Australia.”

Source: My Digital FC