New Delhi: Tata Power Friday said it has signed an agreement worth USD 700 million with Clean Energy Invest AS (Clean Energy) and IFC InfraVentures(IFC) for developing hydro projects in Georgia for sale of power primarily to Turkey.
"Tata Power through its subsidiary Tata Power International has signed an agreement with Clean Energy Invest AS (Clean Energy) and IFC InfraVentures(IFC) for developing hydro projects in Georgia for sale of power primarily to Turkey," the company said in a statement.
The hydro projects will have an aggregate capacity of 400 MW and developed in three phases, the statement said.
The first phase of 185 MW is expected to be completed before mid 2016. Tata Power and Clean Energy would hold 40 percent stake each.
"The power generated by the projects is planned to be vended primarily to Turkey. The total project cost is estimated to be about USD 700 Million," the statement said.
"Georgia is a great country to work in and Turkey is a fast evolving energy market in Europe. This relationship with Clean Energy and IFC InfraVentures puts us on a strong footing to take advantage of the considerable potential of this market," Anil Sardana, Managing Director, Tata Power said in the statement.
Tata Power has an existing hydro generation capacity of about 450 MW in Maharashtra that feeds clean power to the city of Mumbai. It has partnership with Norway-based SN Power to develop hydropower projects.
Tata Power also has a JV with the Royal Government of Bhutan under which it is implementing a 114 MW from Dagachhu Hydro Project with Druk Green Power Company.
Tata Power has plans to generate 20-25 percent of its total generation capacity from clean energy sources.