ReNew Wind Energy (Rajkot) Private Limited

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In July 2011, ReNew Wind Energy (Rajkot) Private Limited, a SPV set up by ReNew Wind Power Private Limited, signed a MOU with Gujarat Energy Development Agency, to develop a 25.2MW wind farm located at Jasdan in Rajkot district of Gujarat. The wind farm would involve the building of 12 units of Suzlon S88 wind turbines with 2.1MW capacity each. The farm was expected to have a load factor of 23%. The electricity generated from the project would be evacuated to Northern, Eastern, Western and North-Eastern grid of India. A fixed-price EPC for the power plant had been awarded to Suzion Energy, Suzion Wind Park and Suzion Power Infrastructure in August 2011. Once the project was commissioned, Suzlon would assume responsibility for turbine operation and maintenance services. ReNew Wind Energy (Rajkot) Private Limited had entered into a 25-year Power Purchase Agreement with the state utility Gujarat Urja Vikas Nigam Limited (GUVNL) for 23.1 MW capacity. The remaining output (2.1 MW) was to be sold through Open Access regime to Philips India. The APPC (Average Power Purchase Cost) base tariff as per GERC (Gujarat State Regulator) prevailing tariff order was US$ 0.079/Unit (INR 4.23 per unit @ 53.44INR/USD). The total capacity of 25.2 MW was eligible for CDM benefits and UNFCC had started the validation project for Certified Emission Reductions(CERs). Proceeds of carbon credit were to be shared as follows: (a) 100% by ReNew Wind Rajkot 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 ReNew Wind Rajkot and GUVNL. Transmission and/or wheeling charges would be paid by ReNew Wind Rajkot. Financial closure took place April 2012.The total project cost at the time of financial closure was US$ 26.3mn (INR 1406.7mn @ 53.44 INR/USD).The debt equity ratio for the project was about 72/28. Financing comprised 14-year 3-month term loan of US$ 17.8mn (INR 950mn) and sponsor equity of US$ 8.5mn (INR 456.7mn). The term loan had a repayment schedule of 52 quarterly instalments. The term loan was arranged by SBI Capital and was funded by PTC India Financial Services Limited. Construction for the wind farm began in October 2011 and was completed in March 2012. Commercial operation started in May 2012.