India: SAEL Solar Power

proposed

The project involves the design, development, construction, operation and maintenance of 300 MW ac solar photovoltaic (PV) power plant located in the state of Andhra Pradesh, India (the Project). The power generated from the solar plant shall be evacuated to the grid through a proposed ~12.8 km transmission line connecting the project sub-station to the grid sub-station at the Kurnool-III power station (owned by Power Grid Corporation of India Ltd., a state-owned entity). The Project will sell electricity to Solar Energy Corporation of India through a power purchase agreement (PPA) for a period of 25 years from the scheduled commercial operation date. The tariff for the Project was determined through a tariff based competitive bidding is INR2.60 per kWh (~USD3.17 US cents per kWh) for the term of the PPA. The Sponsor of the Project is SAEL Industries Limited (SAEL Industries), an emerging renewable energy company in India. SAEL Industries has an overall contracted solar power asset portfolio of ~4,455 MW which comprises of ~365 MW of operating capacity, and the balance under construction and pre-development which the company plans to install by 2026. The estimated total project cost is USD192 million. The proposed total debt financing for the Project is USD144 million which would primarily be used to fund the construction of the solar plant and other costs such as financing costs, contingency etc.