Adani Abdasa Solar Plant

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In May 2010, Adani Power Limited (a Adani Group company),signed an MoU with Gujarat Energy Development Agency (GEDA) for setting up a 40-mw photovoltaic solar project at Bitta village, near Abdasa, in Kutch district of Gujarat, under the Gujarat Solar Policy 2010. APL had planned for a 100MW project, and 40MW would be the first phase of this implementation. The project activity will consist of amorphous Silicon thin film modules of 100/95 Wp capacity installed in series and parallel combination. When completed, the project was expected to be one of the country’s largest PV projects APL would requrie 350 acres of land for the project. The output from the project would be fed to the North-East-West-North-East (NEWNE) grid of India. APL had awarded the EPC to Aries Waaree Solar Pvt Ltd. (AWSPL), a joint venture company between, Mumbai based Waaree Group and Aries Ingenieria Sistemas of Spain in September 2010. APL had entered into a 25-year Power Purchase Agreement with the state utility Gujarat Urja Vikas Nigam Limited (GUVNL), in May 2010, which would be effected at the time of commissioning of the project. The APPC (Average Power Purchase Cost) as per the Gujarat Solar Policy 2010, was US$ 0.33/Unit (INR 15 per unit @ 45INR/USD) for the first 12 years, and US$ 0.11/Unit (INR 5 per unit @45 INR/USD) from 13th year to 25th year. The total capacity of 39.2 MW was eligible for carbon credits. Proceeds of carbon credit were to be shared as follows: (a) 100% by project developer in the first year after the date of commercial operation of the generating station/ transmission system; (b) 2nd year – share of beneficiaries (DISCOM-GUVNL) @ 10% to progressively increase by 10% every year up to 50% and than to be shared in equal proportion, by the generating company and the GUVNL.Transmission and/or wheeling charges would be paid by APL. Financial closure took place in April 2011.The total project cost was US$ 150.2mn (INR 6760 mn @45 INR/USD).The debt equity ratio for the project was 70/30. Financing comprised of Debt of US$ 105.1mn (INR 4732mn @ 45INR/USD) and sponsor equity of US$ 45.1mn (INR 2028mn @ 45INR/USD).Other details of the financial closure were not known. ICICI Bank also provided financial assistance by way of issuance of INR 2750mn letter of credit facility to APL. Construction for the wind farm was expected to start in September 2010 and commercial operation was expected to start in December 2011. The 40MW Phase-I was finally commissioned in January 2012.