BP’s retreat ‘back to petroleum’ continues today with the news that it has sold its Indian wind business for about $95m. The buyer is Green Infra Limited, an independent electricity generator backed by IDFC Private Equity.
The news is no surprise: BP has long made it clear that it is focusing its wind business on the US, because that is where it has the best chance of being profitable. US tax credits and the ready availability of land for wind farms help make America the most attractive country in the world for investment in renewables.
All the same, the business being sold is relatively sizeable, with 100 megawatts of capacity. BP’s remaining portfolio, all of it in the US, is 1,000MW. BP says projects now in an advanced state of development could add a further 1,000MW to that figure, and it has the potential for developments producing 20,000MW.
Realising that potential can be a slow process, however. The Titan wind farm planned by BP and Clipper in South Dakota could have a capacity of 5,050MW. Phase 1, now under construction, will offer just 25MW.
It is hard to see the move as anything other than a sign that BP is more committed than ever to focusing on the oil and gas business it knows best.
BP’s jatropha venture: In case you were wondering (FT Energy Source, 17/07/09)