Tata BP Solar may diversify into alternative energy business

BANGALORE: Tata BP Solar, a Bangalore-based 51:49 JV of BP Solar and Tata Power is looking at opportunities in other alternative energy sources like wind, hydrogen, natural gas (low carbon) and hydro apart from their solar energy business. It also plans to invest $300 million over a 300mw cell manufacturing plant to be launched by 2010 in Bangalore. This will be the largest manufacturing plant for BP Solar, globally. BP Solar has manufacturing capacities in Spain, US, Australia and China.

BP Solar is a part of BP Alternative Energy, which over the next 10 years aims to invest $8 billion globally in solar, wind, hydrogen and natural gas power technology. BP’s investments in India include Castrol India and Tata BP Solar. Speaking to ET, Lee Edwards, president & CEO, BP Solar said,

“The JV with Tata Power has huge potential, therefore, we could look at more opportunities in other alternative energy sources. Tata BP Solar has been witnessing around 40% growth in India over the last two years.” The company has recorded revenue of Rs 650 crore this fiscal. Currently, 60% of the solar cell produced in Bangalore is exported to Europe.

Tata BP Solar has added 36mw solar photovoltaic production line capacity with an investment of $22 million to the existing 16 mw taking the total cell manufacturing capacity to 52 mw per annum. The board has also approved of $100 million investment for the next phase of expansion, which will see an additional 128 mw of cell manufacturing capacity to be added during 2007-08, taking the total capacity to 180 mw. This is a part of the planned 300 mw cell manufacturing plant.