August 11, 2022
  • August 11, 2022

Torrent Power wants to grow through new acquisitions, new offers

By on July 18, 2022 0

Strong points :

  • Torrent wants to enter the transmission and distribution sectors through privatization and franchising.
  • Torrent’s total power generation portfolio is currently 4,975 MW.

Torrent Power’s annual report reveals that the company is looking to expand its renewable energy portfolio through new acquisitions of existing projects. Torrent also wants to enter the transmission and distribution sectors through privatization and franchising.

Torrent’s total power generation portfolio currently stands at 4,975 MW, which includes both existing and under-development projects. Of this total, 2,730 MW is gas-based, 663 MW solar, 1,220 MW wind and 362 MW coal.

Samir Mehta, chairman of Torrent Power, says the twin challenges of coal shortages and the Russian-Ukrainian conflict have had a negative impact on India’s power sector. Therefore, India should move quickly towards clean energy sources in a quest to find a sustainable future. Rising fossil fuel prices around the world are also pushing countries to consider investing in renewable energy.

Mehta said, “We aim to grow our renewable energy portfolio through new deals or acquisitions in the coming years…we are firmly positioned to move your (Torrent Power) business on the path to financial and of a sustainable future”.

He said: “During the first half (2021-22), we saw growth in electricity demand of around 12%, the highest in a decade. However, the growth trajectory was quickly derailed due to coal supply constraints accompanied by high coal and gas prices. The Russian-Ukrainian conflict and the economic sanctions against Russia have had an additional impact on the situation.

Torrent does not build any coal or gas power projects. The company informs that the solar and wind energy under construction by Torrent remain 400 MW and 415 MW respectively.

The President added: “(Electricity) tariffs were so high that (electricity) regulators had to step in and cap electricity prices. Successive waves of the COVID-19 pandemic throughout the year have heightened business continuity concerns. »

In April, Torrent announced the acquisition of a 50MW solar power plant in Telangana from SkyPower Group for consideration of Rs 417 crore through a share purchase agreement.