TATA Mithapur Solar Plant

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Tata Power Renewable Energy Limited (TPREL) a subsidiary of Tata Power Company Limited (TPCL), signed an MoU with Gujarat Energy Development Agency (GEDA) for developing a 25 MW solar photovoltaic (PV) power project located at Mithapur in Gujarat, under Gujarat Solar Power Policy 2009. The plant was spread over 100 acres of land and would use Crystalline Silicon Photo-Voltaic Technology. This plant was one of the largest of its kind in the country and would feed power into the grid.The output from the project would be fed to the North-East-West-North-East (NEWNE) grid of India. Power evacuation was planned through a 66 KV line, which, as per the state policy, was the responsibility of Gujarat Energy Transmission Corporation Limited (GETCO). Tata BP Solar Limited and Photon Energy Systems Limited were the EPC contractors. Tata BP Solar Ltd, Suntech, and Canadian Solar Inc. would be the equipment suppliers. TPREL 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 25 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 TPREL and the GUVNL. Financial closure took place in November 2011 at a debt/equity ratio of 70/30.The total project cost was US$ 77.5mn (INR 3643mn @47 INR/USD). Financing comprised of sponsor equity of US$23.2mn (INR 1092.8mn) and Debt of US$ 54.2mn (INR 2550mn). The 12-year 3-months term loan had a repayment schedule of 44 qaurterly instalments. Theloan was arranged by SBI Capital Markets. Lenders were State Bank of India (INR 1275mn) and Export Import Bank of India (INR 1275mn).The Asian Development Bank (ADB) also provided a Partial Credit Guarante (PCG) for the project. The construction began in July 2011 and the project was commissioned on 25th January 2012.