NuPower Renewables (Tirunelvelli) Windfarm 100.5MW

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NuPower Renewables Limited (NuPower) entered into an agreement with Tamilnadu Government to develop a 100.5MW wind farm located at Tirunelvelli district in the state of Tamilnadu. NuPower initially conceptualized the project activity as a 150MW wind power generation facility. However, due to delays faced by them in receiving payments from the Tamilnadu electricity board for the electricity export, in February 2012, NuPower board decided to delay the implementation of 49.5 MW (of 150 MW) capacity under the project activity and develop it as another project at a later stage (possibly Phase II). There was also a possibility of change in the locations for 49.5 MW (Phase II) WTG installation even outside the state. The following project details thus pertain to 100.5 wind farm. The wind farm would involve the building of 67 Regen Vensys V77 make wind turbines of 1.5MW capacity each. The electricity generated from the project will be supplied to the Tamil Nadu Generation and Distribution Corporation (“TANGEDCO”) connected to the Southern Regional (“SR”) Electricity grid of India. NuPower Renewables Limited (Tirunelvelli ) would sell the power to Tamilnadu State Electricity Distribution Company Ltd (TNEDCL) through a PPA. The APPC (Average Power Purchase Cost) 20-year base feed-in tariff as per applicable TNRC (Tamil Nadu State Regulator) tariff order dated 28 Dec 2010, was US$ 0.052/Unit (INR 2.37 per unit @ 45.73INR/USD). The transmission charges would be paid by NuPower to the state transmission utility (“TANTRANSCO” (Tamil Nadu Transmission Corporation Limited). The net tariff (INR 4.23/kWh) for the project activity (100.5 MW) would be the weighted average of tariff determined under APPC+ REC scheme (INR 4.77/kWh) and under preferential tariff scheme (INR 3.39/kWh). 61.5MW of the project capacity(100.5MW) was also registered under REC scheme in June 2012. Only 48MW of project capacity of 100.5MW had been registered till March 31, 2012 and for the units commissioned thereafter the GBI policy had been discontinued. However, the total capacity of 100MW was eligible under CDM benefits under UNFCC. The Wind Turbine Generators (WTGs) would be supplied by ReGen Powertech Private Limited (“ReGen”). Procurement order and EPC contract were signed in March 2011.Erection and Commissioning of the WTGs would be done by Renewable Energy Generation Private Limited (REGPL) while Essar Wind Farms Limited (“EWFL”) would be responsible for wind farm development (including land tie-up, installation, and commissioning of sub-station). Financial closure reportedly took place in September 2012.The total project cost at the time of financial closure was US$ 133.1mn (INR 7112.6mn @ 53.44 INR/uSD).The debt equity ratio for the project was about 70/30. Financing comprised of a 12-year term loan of USD 93.2mn (INR 4978.8mn) and sponsor equity of US$ 39.9mn (INR 2133.8mn). The term loan was reported to be priced at 14.75%. The term loan was arranged by Punjab National Bank. Construction for the wind farm started in March 2011 and was fully commissioned in September 2012. The 1st wind turbine generator was commissioned on 19th January 2012.