Tata Power Visapur 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 32MW wind power project at Visapur in Satara district of Maharashtra. The project would be executed by Tata Power. The wind farm would involve the building of 16 wind turbines of Kenersys K-82 make wind turbines 2MW capacity each. The electricity generated from the project would be evacuated to the state grid through Northern, Eastern, Western and North-Eastern grid of India. Kenersys India 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) for purchase of wind energy from the 32MW wind energy project through a 13-year PPA. The PPA would remain valid till December 31,2027. 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 27th March 2014 at a debt equity ratio of 70/30. The estimated project cost at the time of financial closure was US$ 32.6mn (INR 1991.1mn @61 INR/USD). Financing comprised a 12-year 4-month term loan of US$ 22.8mn (INR 1393.8mn) and sponsor equity of US$ 9.7mn (INR 597.3mn). The term loan had a repayment schedule of 44 quarterly installments. The loan was provided by State Bank of India. Out of the total capacity of 32 MW, the Company had commissioned 24 MW by March 2014 and 26 MW by November 2014.