Moser Baer (Porbandar) Solar Project

active

In January 2009, Moser Baer Energy & Development Limited (a Moser Baer group company),signed an MoU with Gujarat Energy Development Agency (GEDA) for setting up a 15-MW photovoltaic solar project at in Village-Bapodar, Taluka-Ranavav, District-Porbandar in the state of Gujarat, under the Gujarat Solar Policy 2009. The output from the project would be fed to the North-East-West-North-East (NEWNE) grid of India. MBEDL has installed Amorphous silicon Thin-film manufactured by Moser Baer and First Solar. Power evacuation was planned through a 66KV line to substation at Ranakandorna, which, as per the state policy, was the responsibility of Gujarat Energy Transmission Corporation Limited (GETCO). Moser Baer Energy & Development Limited (MBEDL) had entered into a 25-year Power Purchase Agreement with the state utility Gujarat Urja Vikas Nigam Limited (GUVNL), 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 MBEDL 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 MBEDL and GUVNL. Transmission and/or wheeling charges would be paid by MBEDL. Financial closure took place in May 2012.The total estimated project cost was US$ 34.8mn (INR 1857.4mn @53.44 INR/USD).The debt equity ratio for the project was 87/13. Financing comprised of Debt of US$ 30.5mn (INR 1627.8mn) and sponsor equity of US$ 4.3mn (INR 229.6mn). The 12-year 6-months term loan had a grace period of 1-year and a repayment schedule of 48 quarterly installments. The debt was arranged by IICL and United Bank of India. The plant became operational in April 2012.