ReNew Wind Energy (AP) Private Limited

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ReNew Wind Power Private Limited entered into an agreement with Karnataka Government, to develop 18 MW wind power project at Chikodi in Belgaum district of Karnataka. The project would be executed by ReNew Wind Energy (AP) Private Limited (RWEAP), a special purpose vehicle. The wind farm would involve the building of 9 Gamesa make wind turbines of 2MW capacity each. The electricity generated from the project would be evacuated to the state grid. Gamesa Wind Turbines Private Limited would develop, construct, commission, operate and maintain the project. ReNew Wind Energy (AP) Private Limited (RWEAP) was expected to sell the power to industrial captive consumers located in the state through a 25-year PPA. RWEAP had already signed long-term power purchase agreements (PPAs) for 17.2 MW out of its total installed capacity of 18 MW, thereby reducing off-take risk. The price risk was also mitigated as PPAs had been signed with industrial and commercial captive consumers yielding a weighted average base tariff of INR 5.71/kWh. The tie-up of power sales with five counterparties diversified the consumer base, thereby partially mitigating the counter-party risk profile. The transmission charges would be paid by ReNew to the state transmission utility.The total capacity of 18 MW was eligible for CDM benefits under UNFCC and it was already approved. The wind farm was commissioned on 29th June 2013. The project debt was tied up post completion of the project on 21st January 2014 at a debt/equity ratio of 75/25. The estimated project cost at the time of financial closure was US$ 20.6mn (INR 1258.335mn @61 INR/USD). Financing comprised a 13-year 1-month term loan of US$ 15.6mn (INR 951mn) and sponsor equity of US$ 5mn (INR 307.335mn). The term loan had a repayment schedule of 52 quarterly installments. The loan was provided by SBI (INR500mn), and Yes Bank (INR451mn).