By Cameron Chai
Tata Power, a private sector power utility in India, has established a joint venture (JV) with Exxaro Resources, a diversified resources company in South Africa. Cennergi is the new energy JV, which will be located in South Africa.
The JV will analyze the feasibility, development, management, ownership, acquisition, operation and maintenance of the renewable energy projects in Namibia, Botswana and South Africa. The key strategy of Cennergi is to establish a balanced portfolio of electricity generation resources. Initially, the energy JV will focus on electricity generation projects in South Africa. The official launch of the new energy company will take place in April 2012.
Sipho Nkosi, CEO of Exxaro Resources, stated that Tata Power and Exxaro Resources joint venture is expected to play a major role in the African energy generation market. Nkosi also added that Cennergi aims to become a major independent power producer (IPP) of clean energy in South Africa. The collaboration with Tata Power will provide additional capabilities and skills to develop a prime energy company in South Africa and will offer huge growth opportunities, concluded Nkosi.
The Managing Director of Tata Power, Anil Sardana, noted that the company is looking forward to work with Exxaro for developing high-quality, efficient, sustainable projects that will provide considerable advantages to the region and local communities.