AES Solar Jodhpur Solar Plant

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In March 2009, AES Solar Private Limited, the Indian subsidiary of AES Solar (a global joint venture between AES and Riverstone LLC formed for development of utility scale solar PV projects across the globe),signed an MoU with Rajasthan Renewable Energy Corporation Limited (RREC) for setting up a 5MW photovoltaic solar project at village Tinwari in Jodhpur district of Rajasthan. In July 2010, the project migrated from Generation Based Incentive (GBI) Scheme to Jawaharlal Nehru Solar Mission (JNNSM). The output from the project would be fed to the northern grid of India. Comet had awarded the EPC to First Solar. In July 2010, AES Solar Private Limited had entered into a 25-year Power Purchase Agreement with NTPC Vidyut Vyapar Nigam (NVVN), which was the the nodal agency to purchase solar power generated by independent solar power producers, under the Jawaharlal Nehru Solar Mission (JNNSM). Please note that this project had been transferred from Generation Based Incentive (GBI) Scheme to JNNSM. The APPC (Average Power Purchase Cost) as per the Rajasthan Solar Policy 2011, for projects migrated to JNNSM would be as per the rate agreed betwen NVVN and AES Solar as per guidelines of Ministry of Renewable Energy (MNRE), details of which could not be ascertained at the time of collection of this information. The total capacity of 5MW was eligible for carbon credits. AES Power would pass on the gross benefits of CDM to the distribution licensee (NVVN). Transmission and/or wheeling charges would be paid by AES Power. Financial closure took place in January 2011.The total project cost was US$ 19.4mn (INR 873 mn @45 INR/USD).The debt equity ratio for the project was 70/30. Financing comprised of a 13year 3month term loan of US$ 13.5mn (INR 610mn @ 45INR/USD) and sponsor equity of US$ 5.8mn (INR 263mn @ 45INR/USD). IDFC was the sole arranger of the term loan which had a repayment schedule of 48 quarterly installments.The Asian Development Bank (ADB) also provided a Partial Credit Guarante (PCG) for these projects under JNNSM. Construction for the project started in February 2011 and commercial operation was expected to start in September 2011.