Tata Power Pethshivpur Windfarm

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Tata Power Renewable Energy Limited (TPREL, a wholly owned subsidiary of Tata Power)entered into an agreement with Maharashtra Government, to develop 49.5MW wind power project at Pethshivpur in Kolhapur district of Maharashtra. The project would be executed by Tata Power. The wind farm would involve the building of wind turbines of ReGen. The electricity generated from the project would be evacuated to the state grid through Northern, Eastern, Western and North-Eastern grid of India. ReGen Powertech Private Limited would develop, construct, commission, operate and maintain the project at an all-inclusive price. Tata Power had entered into a PPA with TPREL (a private distribution company) on 16th January 2014, for purchase of wind energy from the 49.5MW wind energy project through a 13-year PPA, which would be sold in the Mumbai distribution region. The PPA would commence from 1st June 2014 and remain valid till 31st May,2027. The APPC (Average Power Purchase Cost) base tariff as per MERC tariff order (dated 29 April 2011 for Wind zone 1) was US$ 0.10/Unit (INR 5.37 per unit @53.44 INR/USD) for the first 13 years of operation. The transmission charges would be paid by TPREL to the state transmission utility.The total capacity of 32 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$ 51.6mn (INR 3150mn @61 INR/USD). Financing comprised a 13-year term loan of US$ 36.2mn (INR 2210mn) and sponsor equity of US$ 15.4mn (INR 940mn). The term loan had a grace period of 2-year 4-months and repayment schedule of 45 quarterly installments. The loan was provided by IDFC Limited. The project construction started in 2013 and was expected to be commissioned by March 2015.