Sprng Energy Private Limited, the renewable energy platform of Actis Private Equity Funds, has announced the commissioning of its first renewable energy project in India.
The 250 MW solar project won for Rewa Ultra Mega Solar Limited (RUMSL) was one of the first solar projects to breach the tariff level of ₹2.979 (~$0.0445)/kWh and a 25-year levelized tariff of ₹3.309 (~$0.0495)/kWh in the country.
Located at Rewa Ultra Mega Solar Park in Madhya Pradesh, the EPC for the project has been done by L&T Construction Limited. The project has been commissioned within the timeline, stipulated under the power purchase agreement (PPA). Solenergi, the 100% holding company of Sprng Energy based at Mauritius had participated in the Rewa solar park auction and won the first 250 MW project.
The electricity produced from this project will cater to the electricity needs of Madhya Pradesh and meeting the green power requirements of Delhi Metro Rail Corporation. The project will help mitigate at least 0.35 million tons of carbon emissions on an annual basis, the company stated.
According to Sprng Energy, it currently has a total portfolio of nearly 1.75 GW of solar and wind projects across India, including both under construction and operational assets.
In 2017, Sprng energy had also won a 197.5 MW wind project under Gujarat Urja Vikas Nigam Limited (GUVNL) Phase I auction at a record-low tariff of ₹2.43 ($ 0.034)/kWh.
In April 2018, it won two back to back projects; one 300 MW wind project under SECI – tranche IV and another 250 MW solar project under the NTPC Anantapur tender. In June 2018, it won another 250 MW of solar projects through SECI tender in Kadapa solar auction.
According to the Mercom’s India Solar Project Tracker, of the total 750 MW capacity, 650 MW has been commissioned so far.
Moreover, Mahindra Susten has also confirmed to Mercom that of the total 250 MW Rewa solar project, it has commissioned 140 MW and 94 MW is scheduled to be commissioned in the first week of June.
Mahindra Renewables, the wholly owned subsidiary of Mahindra Susten, has already achieved the financial closure for the project through a ₹7.5 billion ($115.5 million) loan from Yes Bank, and financial assistance of ₹2 billion ($30.8 million) from other financial institutions.
Mahindra also received $50 million (~₹3.2 billion) as a senior loan from IFC, the World Bank’s financial arm for the Rewa project. Apart from this, the IFC also assisted Mahindra in the mobilization of the syndicated parallel loan of up to $100 million (~₹6.4 billion) for the development, financing, construction, operation, and maintenance of the grid-connected solar PV project.
The IFC also provided a $50 million (~₹3.2 billion) loan to ACME Jaipur Solar Power Private Limited, a wholly-owned subsidiary of ACME Solar, to develop the 250 MW solar project in the Rewa Solar Park for project development, construction, financing, operations, and maintenance.
It may be added here that the Indian Renewable Energy Development Agency Limited (IREDA) had entered into a $35 million sub-loan agreement with the Rewa Ultra Mega Solar for the development of the Rewa and Mandsaur solar projects in the state of Madhya Pradesh. The funds were to be used to develop 750 MW of transmission and evacuation infrastructure at Rewa and 250 MW of infrastructure at Mandsaur. The capacity was to be used by grid-connected solar photovoltaic projects.
Soumik is a staff reporter at Mercom India. Prior to joining Mercom, Soumik was a correspondent for UNI, New Delhi covering the Northeast region for seven years. He has also worked as an Asia Correspondent for Washington DC-based Hundred Reporters. He has contributed as a freelancer to several national and international digital publications with a focus on data-based investigative stories on environmental corruption, hydro power projects, energy transition and the circular economy. Soumik is an Economics graduate from Scottish Church College, Calcutta University.