Africa is seeing one Indian name cropping up in various sectors, particularly renewable energy. The Tata name is synonymous with power, both figuratively and literally. The group has a hand in various sectors including telecommunications, engineering, mining, and energy. Under its energy umbrella, it has six segments including: Powerlinks Transmission, Tata BP Solar, Tata Petrodyne, Tata Power, Tata Power Delhi Distribution, and Tata Power Trading.
The group began its African ventures in 1977 with Tata Zambia, marking its vehicle brand (formerly known as the cheapest car in the world). In 1994, the group set up Tata Africa Holdings in Johannesburg and is also the headquarters. Tata’s brand has grown throughout the continent with investments exceeding $100 million. Most recently in March, the conglomerate’s power division partnered with South Africa’s Exxaro Resources to form a JV unit solely focused on power generation within the southern African region known as Cennergi.
And Tata is looking to connect its power division to its mining segment. The group is searching for coal mines and natural gas assets within the continent to ensure feedstock supplies while investing in renewable energy and power generation within countries rich in mineral resources.
India’s power sector is seeing numerous regulatory and project delays, so it only makes sense that for its largest company to find a way to meet its 2020 energy target of 26 GW outside in developing countries – namely in Africa. The company currently generates over 6.6 GW, including 852 MW via renewable energy sources. It hopes to compose 20-25% of its 2020 target with RE setting an example of a large corporation diversifying its energy demands.
Expect to see more of Tata throughout the continent in the upcoming years.
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