Tata Power and Exxaro form JV in South Africa
Tata Power, through its subsidiary Khopoli Investments Ltd and South Africa based Exxaro Resources Ltd (Exxaro) have announced the formation of a 50:50 Joint Venture (JV) to create a new energy company, Cennergi (Pty) Ltd (Cennergi). Cennergi, which will be based in South Africa, will focus on the investigation of feasibility, development, ownership, operation, maintenance, acquisition and management of electricity generation projects in South Africa, Botswana and Namibia. The initial project pipeline focuses on renewable energy projects in South Africa and Cennergi’ s strategy is to create a balanced portfolio of generation assets.
“Cennergi has been created by companies from developing nations to serve developing nations. We expect Cennergi to play a key role in the African electricity generation market,” says Sipho Nkosi, Exxaro’s chief executive officer.
“Cennergi aims to be the leading cleaner energy independent power producer (IPP) in Southern Africa, serving an expanding energy market. The company’s diverse project portfolio confirms its commitment to both people and planet. Through Cennergi, we will be powering progress in the areas in which we operate. This partnership with Tata Power will add the skills and capabilities necessary to create a world class energy company in this region with enormous growth opportunities”, he adds.
Speaking on the development, Anil Sardana, MD, Tata Power said, “Tata Power is happy to pursue new avenues in the International space by partnering with good local entities. The Joint-Venture is consistent with our strategy of pursuing growth opportunities for energy development in potential markets.We look forward to working together with Exxaro to jointly develop efficient, high-quality and sustainable projects that will bring significant benefits to the region as well as local communities. Through this partnership, we will be able to pursue business opportunities holistically and make responsible contribution in this high potential region.”
Cennergi will be officially launched with effect from April 2012.