Tata Power Palaswadi Solar Project

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Tata Power Renewable Energy Limited (TPREL, a wholly owned subsidiary of Tata Power) entered into an agreement with Maharashtra Government, in July 2013, to develop 25MW solar power project in Maan taluka in Satara district of Maharashtra. The project would be executed by Tata Power. The solar plant uses Crystalline Silicon Photo-Voltaic Technology. The solar plant was expected to generate approximately 46 MU per year which would enable Tata Power meet its Solar Renewable Purchase Obligations (RPO). This plant was one of the largest of its kind by a private power utility in the State and the power would be evacuated through Maharashtra State Electricity Transmission's network. The plant would be spread over 130 acres of land. EPC contractor was Tata Power Solar Systems, ABB and API. Tata Power had entered into a PPA with TPREL (a private distribution company), for purchase of solar energy from the 25MW AC solar plant through a 25-year PPA, which would be sold in the Mumbai distribution region. The PPA would commence from 31st March 2014 and remain valid till 31st March,2039. The tariff would be as per relevant MERC tariff order. The transmission charges would be paid by TPREL to the state transmission utility. The total capacity of 25 MW was eligible for CDM benefits under UNFCC. The project attained financial closure on 24th February 2014 at a debt equity ratio of 70/30. The estimated project cost at the time of financial closure was US$ 40.8mn (INR 2490mn @61 INR/USD). Financing comprised a 13-year 7-months term loan of US$ 28.5mn (INR 1740mn) and sponsor equity of US$ 12.3mn (INR 750mn). The term loan had a grace period of 1-year 10-months and repayment schedule of 48 quarterly installments. The loan was provided by IDFC Limited. The project construction started in 2013 and was expected to be commissioned by October 2014. The project was successfully commissioned on 31st May 2014. The project was ready during last week of March but could not be connected to state grid due to non availability of shutdown in existing lines and substations.