ACME_Rajasthan Solar Projects Portfolio

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In February 2014, ACME Solar Energy Private Limited (ASEPL), was awarded the license for setting up a 100MW solar thermal power project at various locations across Jodhpur district in Rajasthan, under the Jawaharlal Nehru Solar Mission (JNNSM) Phase-II (Batch-I) of the scheme. The 100MW would be executed through ASEPL's five wholly owned subsidiaries, Ranji Solar Energy Private Limited (20MW), Acme Gurgaon Power Private Limited, Acme Rajdhani Power Private Limited, Acme Mumbai Power Private Limited and Medha Energy Private Limited. Under the JNNSM-II the total aggregated capacity of grid connected Solar Projects in Batch-I was expected to be 750 MW. Electricity generated from the project would be evacuated for consumption in the Combined Regional grid (comprising the electrical system of Northern,Eastern, Western, and North-Eastern grids) of India. The projects would be based on Solar Photo Voltaic technology using Tandem Structure (with Amorphous & Microcrystalline Silicon) and Thin Film PV modules for power generation.The SPVs planned to sign the EPC and O&M agreements for the Projects with Acme Cleantech Solutions Limited and ASEPL respectively. The JNNSM mission had designated Solar Energy Corporation of India (SECI) as the nodal agency for procurement of solar power through competitive bidding in October 2013. The off taker for the Project would be SECI. On 21 February, 2014,a total of 68 bids were received from 58 developers, for 122 projects with a cumulative capacity of 2,170 MW. Of these, 5 companies were disqualified on technical grounds and 63 were asked to submit price bids. 36 projects with a capacity of 700 MW opted to bid under the Domestic Content Requirement (DCR) part of the bidding process and the remaining 86 projects with a capacity of 1,470 MW opted for the open bids. Each part would be allocated an equal capacity of 375 MW. Bids in both DCR and non-DCR category exceeded the capacity to be allocated.Letters of Interest (LoIs) were awarded for 750MW, by 10 March 2014. Bidders were required to submit proposals requesting the viability gap funding (VGF) per each MW of solar power installed. The CERC (Central Regulator) approved applicable tariff for grid connected solar power projects for FY 2010-11 would be applicable. Since, the target allocation for solar thermal projects was 750 MW, only the lowest VGF seeking projects were finally selected to be set up. The lowest bid for VGF was received from Gujarat Power Corporation Limited (GPCL) at INR 1.75mn/MW in the non-DCR category. Highest VGF quoted in non-DCR category was INR 24.9mn/MW by Madhav Infra Projects Limited. In the DCR category, the lowest bid was INR 13.5mn/MW by Swelect Energy Systems Limited. The highest bid for the DCR category it was INR 25mn/MW by IL&FS Renewable Energy Limited. ASEPL won five projects quoting the lowest VGF - Ranji Solar Energy Private Limited (DCR Category, 20MW, VGF of INR 24.499872mn/MW), Acme Gurgaon Power Private Limited (non-DCR category, 20MW, VGF of INR12.999943mn/MW), Acme Rajdhani Power Private Limited (non-DCR category, 20MW, VGF of INR11.898897mn/MW), Acme Mumbai Power Private Limited (non-DCR category, 20MW, VGF of INR11.399884mn/MW), and Medha Energy Private Limited (non-DCR category, 20MW, VGF of INR9.779439mn/MW). The total VGF sought comes out to a cumulative amount of US$ 23.1mn (INR 1410.8mn @61 INR/USD). Transmission and/or wheeling charges would be paid by the respective SPVs. Financial closure took place on 20th November 2014.The total project cost was estimated at US$ 132.4mn (INR 8080mn @61 INR/USD).The debt equity ratio for the project was expected to be 73/27. Financing was expected to comprise debt of US$ 96.7mn and sponsor equity of US$ 35.7mn. The proposed IFC investment consists of an IFC ‘A’ Loan (16-year tenor) of up to US$ 33.1mn (INR 2019mn @61 INR/USD) and possible syndication of up to US$ 63.6mn (INR 3883mn). Comissioning of all the projects were expected by 28th April 2015. It was not known whether the Government grant of US$ 23.1MN was part of the Project Cost. However a capital cost of INR 80.8MN/MW for 100MW project is in line with prevailing capital costs for solar power plants in India.