Bhoruka Power

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In 2008, Bhoruka Power Corporation (BPC) undertook the development of 6 Megawatt (MW) wind power plant at Yamunanagar district in Haryana. The project was the result of Haryana Renewable Energy Development Agency’s (HAREDA) initiative to encourage private investors to set up projects in the fields of solar power, biomass, wind energy, small hydro and co-generation biomass power projects. 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. BPC holds 100% equity in the project. The total cost of the generation project was estimated at US$ 11.71 million. The project reached financial closure in July 2008 with a debt equity ratio of 70:30. Construction works began in May 2008 and the project was expected to be commissioned first quarter of 2009.