Tata Power Gains in Mumbai After Wind Project Wins Carbon Credit Approval

Tata Power Co., India’s largest non- state generator, rose in Mumbai after its wind project won eligibility from the United Nations to earn carbon credits.

The shares gained as much as 1.2 percent to 1,342.95 rupees and traded at 1,333.9 rupees, up 0.5 percent, as of 12:23 p.m. local time. The benchmark Sensitive Index fell 0.3 percent.

“Carbon credits add straight to the bottom line,” said Mehul Mukati, a Mumbai-based analyst with Ambit Capital Pvt. “This shows the potential” of Tata Power’s renewable energy plans, he said.

The 50-megawatt wind power project at Khandke in Maharashtra state, was registered with the UN Clean Development Mechanism, Tata Power said in a statement yesterday. The CDM is the world’s largest carbon market after the European Union program.

The venture is expected to earn 85,000 Certified Emission Reductions annually, Tata Power said. If awarded, those CERs would be valued at 1 million euros ($1.27 million) based on yesterday’s closing benchmark price of 11.95 euros a metric ton of carbon dioxide on the European Climate Exchange in London.

Tata Power plans to expand the amount of power it generates from clean sources by as much as 16-fold to 10,000 megawatts in four years, it said on June 28.

To contact the reporter on this story: Natalie Obiko Pearson in Mumbai at npearson7@bloomberg.net.

• Tweet
• More
  • Business Exchange
  • Buzz up!
  • Digg
• Print
• Email