This brings India closer to its target of 15% capacity addition through renewable energy by the year 2020.
Simran Wind Project Pvt Ltd, a subsidiary of the Kolkata based Techno Electric & Engineering Company Ltd, has become the first project developer in the country to have won accreditation for more than 100 MW for its wind generation project under the Renewable Energy Certificate Scheme.
Simran began Phase I expansion in wind energy since March 2011 & expects to commission it by end of September. Phase 1 was initially planned for 101.4 MW in Tamil Nadu out of which 91.9 MW has been commissioned. With more sites available in the vicinity the company has enhanced the project size for Phase 1 from 101.4 MW to 114 MW and the remaining capacity is planned to be commissioned by mid-October.
Simran has entered into a 20-year Power Purchase Agreement with the Tamil Nadu Generation & Distribution Company at an APPC tariff of Rs 2.37 per unit. The total capacity is eligible under REC as per the Central Electricity Regulatory Commission and is also eligible for GBI benefit. The total of 114 MW generation capacity is expected to generate 2,75,000 RECs on an annual basis.
Simran’s 7.5 MW of existing capacity has been successfully registered with the Indian Renewable Energy Development Agency for GBI benefits. Simran enjoys various benefits as a clean energy generation company. Of the existing capacity, 21 MW has been registered under UN's Clean Development Mechanism with capacity to generate 50,000 CERs annually.
The total project cost for Phase I of 101.4 MW stands at $133.33 mn (Rs 600 crore). Total debt financing amounts to $80 mn (Rs 360 crore) and equity investment at $53.33 mn (Rs 240 crore).
The project brought in International Finance Corporation as an equity partner in Simran, extending $5 mn for a 3.38% stake. Lenders to the project include IFC and Standard Chartered Bank putting in $30 mn each & DBS Bank which funded the project by investing $20 mn.
Commenting on the development, Mr. P.P. Gupta, Managing Director, TEECL, said, “The landmark achievement has further strengthened our position in green energy space. Moreover, Wind has emerged as the fastest growing category in the renewable sector.”
“With such attractive incentives coming in for the sector, the government’s target of 15% capacity addition through renewable energy by the year 2020, is no more a mammoth task to achieve”, Mr. Gupta further added.
Photo from Ruud Schreuder
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