Belgaum Wind Farm

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In 2008, Belgaum Wind Farms Private (BWFPL), a subsidiary of UK based Indian Energy Limited (IEL), undertook the development of 24.8 Megawatt (MW) wind power plant at Gadag district in Karnataka. The project would feed 56 million kwh of electricity to the Karnataka state grid. In India, the regulatory commission of respective states has separate policies for procurement of power generated from renewable sources. Under these regulations, the project proponent enters into long-term power purchase agreements (PPAs) with electricity distribution companies for the power produced by them. In India, the regulatory commission of respective states has issued Renewable Purchase Specification (RPS) under which all the State Electricity Boards (SEBs) and/or Distribution Companies (Discoms) have to purchase a minimum quantum of power from renewable sources like wind, biomass, co-generation etc., this minimum percentage varies from state to state and is in the range of 3 to 5 per cent for northern states and 4 to 7 per cent in western states. BWFPL, the special purpose vehicle was formed in March 2007 to execute the project. IEL holds 100% equity in the SPV The wind farm will be spread over nine villages (Kurtkoti, Harti, Kanavi etc.) in the district of Gadag. The projects will comprise of 31 turbines of 0.8 mw each. Enercon India is EPC contractor for the project. The total cost of the generation project was estimated at US$ 33.49 million. The project reached financial closure in September 2008 with a debt equity ratio of 1.7:1. Debt was a single 12.5-year term loan lead arranged by State Bank of India. Construction works began in 2008 and the project was expected to be commissioned 2011.