Greenko readies wind projects in India

Greenko will start of its implementing its wind energy development in India.

Wind power is an important part of the Group’s future plans to create a balanced portfolio of clean energy producing assets, and to achieve 1 GW of operating capacity by the end of the 2014 financial year. Therefore it has set a short-term target of 200 MW of wind generating assets. The portfolio will grow from 611MW to 811MW of capacity, both operational and in development.
 
Greenko has spent the last two years undertaking a wind data collection, technological and financial review in the wind energy market and has started constructing 65 MW in the state of Maharashtra, which will be operational at the start of Q2 of the financial year 2011. Additionally, it has started collecting data at numerous other sites, and is at various stages of development in other states such as Karnataka, Rajasthan and Andhra Pradesh.

The Group has signed a Power Purchasing Agreement at an attractive tariff with Reliance Infrastructure, the largest power distributor company for the city of Mumbai. Under this 13 year agreement, Greenko will supply 200 MW of wind power at a current tariff of US$0.109 per KWH. This will be subject to adjustments on first delivery in 2011 and thereafter fixed. Greenko has two years to achieve this output target. This provides a firm basis for the financing of the first leg of Greenko`s wind strategy, which is expected to be at least 75 per cent leveraged.
 
The Group has also signed a technology partnership with GE for their latest XLE class turbines, specifically designed for low wind regimes in India. This is being deployed for the first time in India, and  based on the cost per turbine, will provide over 20 per cent of uplift in generation potential as compared with other options tested. This produces a relatively low cost per KWH which is supported by the reliability of the turbines provided by GE.
 
“We are pleased to announce our wind strategy; the timing of our entry into this market is the result of  successfully resolving various challenges in the Indian wind IPP sector,” said Anil Chalamalasetty, CEO & MD of Greenko “The model adopted by Greenko, with reliable global technologies, revised tariff structures and better financial leverage, will ensure quality long term earnings and further diversification, the majority of which will be Hydro, while significantly strengthening  our position as a leading clean energy company in India,” he added.