Solar Semiconductor Power Company (India) Private Limited

active

Prospective

A consortium of Solar Semiconductor Private Limited (51%) and NSL Renewables Power Private Limited(49%),signed an MoU with Gujarat Energy Development Agency (GEDA) for setting up a 20-MW photovoltaic solar project in Kutch district 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 through the state grid. The project has deployed amorphous silicon (a-si) based PV panels. PV panels and inverters for the project had been sourced from the Taiwan-based Sun well Corporation and Italy-based Elettronica Santerno SpA. Power evacuation was planned through a 66KV line to substation, which, as per the state policy, was the responsibility of Gujarat Energy Transmission Corporation Limited (GETCO). SSPL (51%) and NSLRPPL (49%) established Solar Semiconductor Power Company (India) Private Limited (SSPCL), special purpose vehicle, to execute the project. SSPCL had entered into a 25-year Power Purchase Agreement with the state utility Gujarat Urja Vikas Nigam Limited (GUVNL), at a fixed tariff of INR 11.25/unit for the first 12 years and INR 7.5/unit for the remaining 13 years. For payment security mechanism GUVNL had established a revolving letter of credit equivalent to an average monthly billing. The project’s economic interest was protected if GUVNL defaulted and subsequently terminated the contract. The off-taker was liable to pay SSPCL an amount equivalent to three years billing based on the first-year tariff considered on normative plant load factor (PLF) of 20%. A 12-year operations and maintenance contract was executed with Lanco Solar Services Private Limited.The fixed-base price with a pre-determined annual escalation (5%) of costs in the contract mitigated uncertainty on operating costs. The project was executed at a cost of US$ 43.4mn (INR 2320.5mn @53.44 INR/USD).The debt equity ratio for the project was 65/35. Financing comprised of Debt of US$ 28.1mn (INR 1500mn) and sponsor equity of US$ 15.4mn (INR 820.5mn). The project was financed initially using sponsor equity and buyer’s credit. The buyer’s credit was subsequently refinanced by a long-term bank loan in July 2014. The 6-year 5-months term loan was arranged by Axis Bank (INR 680mn) and Aditya Birla Finance (INR 680mn). The plant was commissioned in June 2012.

Energy

India

World Bank Group

Project

Advanced Electronics, Automotive, Power Generation (CCGT), Power Transmission, Solar, Commercial, Government