RPower gets Rs 400 crore funding for its solar plant
New Delhi: Anil Ambani-led Reliance Group firm RPower has got a Rs 400 crore loan from the US Emport-Import Bank for a 40-MW solar plant being set up in Rajasthan.
The company is developing the country`s largest solar photo voltaic (PV) project with 40-MW generation capacity, which is scheduled for commissioning by March, 2012.
When contacted, a Reliance Power Spokesperson confirmed the sanction of the loan by the US Exim Bank, adding that the company was "fully committed to develop a large renewable energy portfolio comprising wind, solar PV and solar thermal projects."
The US Exim Bank approved the loan in their meeting on August 25, 2011.
A long-term Power Purchase Agreement (PPA) for the PV project has been signed with group company Reliance Infrastructure at the Maharashtra Electricity Regulatory Commission (MERC)-approved tariff. The company has already placed equipment orders with a US supplier for the project, which will be eligible for carbon credits.
The 40-MW solar plant is the first plant in a series of solar energy projects planned by the company.
This would be followed by commissioning of another 100-MW solar plant in Rajasthan, which would be a Concentrated Solar Power (CSP) project to be commissioned by May, 2013.
The long-term Power Purchase Agreement for the CSP project was signed with NTPC Vidyut Vyapar Nigam Ltd (NTPC`s power trading arm) at a tariff of Rs 11.97 per unit.
As part of its renewable energy business plans, RPower also plans to invest around Rs 1,500 crore to develop a 200-MW wind power project at Vashpet, Maharashtra.
This would be the largest investment in wind energy in India by any power generation company at a single location. This project will be developed under a special purpose vehicle of RPower.
The project is scalable by an additional 200 MW, which would take the cumulative capacity at the project location to 400 MW.
The company already has operational wind projects with capacities of around 100 MW in the states of Gujarat, Maharashtra and Tamil Nadu.
The Vashpet plant will be the largest wind power project in India, comprising 80 wind electric generators (WEGs) with a rated capacity of 2.5 MW each, which are the highest capacity wind turbines available in India.
The project is expected to be implemented in phases and the full capacity of 200 MW will be commissioned by September, 2012. RPower has entered into a long-term power purchase agreement with RInfra for the electricity output at the tariff declared by the Maharashtra State Electricity Regulatory Commission (MERC), which is Rs 5.37 per unit.
Power generated from the project will be wheeled for the Mumbai distribution business of R-Infra.
Barcap, the investment banking arm of British lender Barclays , and Morgan Stanley declined to comment.