Moser Baer Precious Solar Plant

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In January 2009, Precious Energy Services Private Limited (PESPL) a Special Purpose Vehicle (SPV) of Moser Baer Clean Energy Limited (MBCEL), signed an MoU with Gujarat Energy Development Agency (GEDA) for setting up a 15-mw photovoltaic solar power plant at Guthawada (Dalpatpura), Taluk Kankarej, District Banaskantha,in Gujarat,under the Gujarat Solar Policy 2009. The proposed project would use thin film technology.The output from the project would be fed to the North-East-West-North-East (NEWNE) grid of India. 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). PESPL 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 2009, was US$ 0.32/Unit (INR 15 per unit @ 47INR/USD) for the first 12 years, and US$ 0.11/Unit (INR 5 per unit @47 INR/USD) from 13th year to 25th year.The total capacity of 15 MW was eligible for carbon credits. Proceeds of carbon credit were to be shared as follows: (a) 100% by project developer in the first year after the date of commercial operation of the generating station/ transmission system; (b) 2nd year – share of beneficiaries (DISCOM-GUVNL) @ 10% to progressively increase by 10% every year up to 50% whereafter the proceeds would be shared in equal proportion, by PESPL 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$ 49.3mn (INR 2317.6mn @47 INR/USD).The debt equity ratio for the project was 70/30. Financing comprised of Debt of US$ 34.5mn (INR 1620mn) and sponsor equity of US$14.8mn (INR 697.6mn). The 13-year 6-months term loan had a repayment schedule of 48 quarterly instalments. The loan was solely arranged by Bank of Baroda.The Asian Development Bank (ADB) also provided a Partial Credit Guarante (PCG) for the project. The project was commissioned in 2011.