beyondbrics

As BP, the British energy giant, back-peddles on its global solar energy initiatives, Tata Power, its Indian partner, is only too happy to buy out its 51 per cent stake in their 22-year old joint venture, Tata BP Solar.

Though the value of the buyout remains undisclosed, Anil Sardana, managing director at Tata Power said in a statement it is a “great opportunity for the company to grow and capture market share” in a country that hopes to generate up to 7 per cent of its electricity, and power a million of its homes, using solar energy by 2022.

Analysts said the deal comes at an opportune time as India looks to boost its green initiatives and wean industries off oil and coal, up to 65 per cent of which are imported, according to Mint.

“It is an opportunistic buy for Tata Power when the solar power sector in India is growing rapidly and valuations are comparatively low due to the economic crisis in Europe and the United States,” said R. Chandrashekhar, global chief executive officer of the renewable power consultancy firm IT Power.

While BP grapples with the fallout from the global economic downturn and recovers from the Gulf oil spill of 2010, Tata Power, India’s biggest independent power producer, looks to expand its 125-megawatt solar power generation capacity both domestically and overseas. Tata Power will retain access to BP’s technology until 2013, but downplayed the fallout from BP’s exit.

“Tata BP Solar is not impacted by the decision of BP to gradually exit its solar business… it is business as usual for them,” Sardana stated.

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