It is planning to enter a 20-year power purchase agreement with the Tamil Nadu electricity board for the sale of power from the project.
The land has been secured and construction of the first phase will commence in December 2009 with full commissioning scheduled by June 2010. Phase I, for which Indian Energy has signed a turnkey construction contract with ReGen, consists of 11 turbines of 1.5 MW capacity each with a total generating capacity of 16.5 MW.
Phase II, for which Indian Energy has signed an expansion option with ReGen, will consist of 22 turbines of 1.5 MW each and a total capacity of 33 MW, with construction scheduled to commence in the second quarter 2010 and the extension to be fully commissioned by December 2010.
ReGen is a Chennai-based company which manufactures turbines using technology from Vensys Energy AG, Germany. Vensys technology is well established, and the worldwide installed capacity of wind turbines of the same design is in excess of 1,650 MW, Indian Energy said.
The company plans to establish the Theni project as a Clean Development Mechanism under the Kyoto Protocol, which is expected to generate approximately 120,000 Certified Emission Reductions (CERs) per annum.
It also believes that the Theni project will be eligible for the generation based incentive scheme that the Indian government is to launch shortly that will give grid connected wind power projects additional revenue per produced kilowatt hour.
Indian Energy expects to shortly receive an in-principle approval from the State Bank of India (SBI) for the Theni project finance.
Managing director Rupert Strachwitz commented: “This is our first investment since our successful IPO in September and fits all the criteria we set out at that time. The Theni project has key permits in place and land secured with construction for the first phase due to start immediately and should provide investors with predictable long term cash flow. We are equally delighted to have both established a new business relationship with ReGen and to have built further upon our existing relationship with SBI."
Indian Energy currently owns and operates a 24.8 MW wind farm at Gadag Plains, near Hubli in Karnataka state, and intends to own a portfolio of wind farms in India with 300 MW of annual generating capacity by the end of the 2012/13 financial year. India has the fifth largest installed wind capacity in the world. Wind power is India’s primary source of renewable power.
The company was incorporated in March 2007 by a management team that has significant experience in renewable energy, corporate finance and emerging markets and a strong relationship with local manufacturers. Its operations are in India and Indian Energy Ltd is incorporated in Guernsey.
Indian Energy is an independent power producer, which owns and operates wind farms in India. The Company currently owns and operates a 24.8 MW wind farm at Gadag Plains, near Hubli in Karnataka, and intends to own a portfolio of wind farms in India with 300 MW of annual generating capacity by the end of the 2012/13 financial year.