AES Solar Patan Solar Plant Phase I & II

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In May 2010, AES Solar Energy Gujarat Private Limited (a project SPV of AES Solar Group),signed an MoU with Gujarat Energy Development Agency (GEDA) for setting up a 15-mw photovoltaic solar project at Charanka in Patan district of Gujarat, under the Gujarat Solar Policy 2009. The Project was proposed to be implemented in two phases- Phase I for 3 MW and Phase II for remaining 12 MW capacity.The output from the project would be fed to the North-East-West-North-East (NEWNE) grid of India. AES Gujarat had appointed Enfinity Solar Solution as the EPC for the project. Power evacuation was planned through an 8 Km 66 KV line, which, as per the state policy, was the responsibility of Gujarat Energy Transmission Corporation Limited (GETCO) and GETCO had already commenced work on it. AES Gujarat had entered into a 25-year Power Purchase Agreement with the state utility Gujarat Urja Vikas Nigam Limited (GUVNL) on 29th 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 15MW was eligible for carbon credits. Proceeds of carbon credit were to be shared as follows: (a) 100% by AES Gujarat in the first year after the date of commercial operation of the generating station/ transmission system;(b) in the 2nd year the share of GUVNL would be 10% which would be progressively increased by 10% every year up to 50% whereafter the proceeds would be shared in equal proportion, by AES Gujarat and GUVNL.Transmission and/or wheeling charges would be paid by AES Gujarat. Financial closure took place in August 2011.The total project cost was US$ 44.7mn (INR 2100mn @47 INR/USD).The debt equity ratio for the project was 73/27. Financing comprised of Debt of US$ 32.5mn (INR 1530mn @ 47INR/USD) and sponsor equity of US$ 12.1mn (INR 570mn @47 INR/USD). The 13year term loan of INR 1530mn had a repayment schedule of 13 semi annual installments. The debt was solely arranged by IDFC. The Asian Development Bank (ADB) also provided a Partial Credit Guarante (PCG) for these projects under JNNSM. Construction for the wind farm was expected to start in March 2011 and commercial operation was expected to start in June 2011 for Phase-I and December 2011 for Phase-II (as per the PPA).