The wind turbines project is fully operational in the state of Tamil Nadu in Amuthapuram, Rasta and Muthiampatti belt. The area accounts for a PLF of around 27.5% on average. The Company has entered into a 20-year Power Purchase Agreement under REC scheme with the Tamil Nadu Generation & Distribution Company (TANGEDCO) at an APPC (Average Power Purchase Cost) tariff of Rs 2.37 per unit. The total capacity is eligible under REC as per the CERC and is also eligible for GBI benefit. Moreover, the project is expected to generate 240,000 RECs on an annual basis.
The wind farm project has been accomplished within a period of 6 months. However, there have been no compromises on quality. The world’s largest independent renewable energy consultancy, Garrad Hassan, was hired to conduct the wind study. A complete Environment and Social study was conducted to understand the impact of the project on the local community. BVQI (Bureau Veritas Quality International), offering third party certification services of quality management, has setup a quality management team to ensure quality. The Wind Turbine Generators were specifically chosen & designed to withstand extreme conditions & operate effectively with lower maintenance cost.
The wind turbines project was funded through a mix of debt (Rs 360 crore) & equity (Rs 240 crore). The project brought in IFC as an equity partner in Simran, extending $5 mn (Rs 22.5 crore) for a 3.38% stake. Lenders to the project include IFC, Standard Chartered Bank and DBS Bank.
Commenting on the development, Mr. P.P. Gupta, Managing Director, TEECL, said, "With the completion of this project, we stand at 196.85 MW generating capacity today. We are firm on our plan to expand at about 150-200 MW annually & achieve a target of 1,250 MW by end of the XIIth Plan period."
"Renewable Energy generation has become quite attractive and with right incentives in place wind power can play a major role in securing a sustainable and clean energy future for India. Wind alone accounts for over 70% capacity amongst other alternatives," Mr. Gupta further added.