Eco Urja Solar Solar Opportunity


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Eco urja and Cymi combine to serve the Indian market for solar project develop0ment and execution

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Eco Urja Solar Solar Opportunity

  1. 1. About us according to the Planning Commission. Although coal remains the primary source of generation, the Indian EcoUrja is a renewable energy company developing a government, through the National Solar Mission plans stream of solar power generation projects in India. The to establish India as a global leader in solar energy. EcoUrja management team consists of senior power 20,000 MW of solar generation capacity is targeted by sector professionals experienced in power generation 2022. (renewable and non-renewable), transmission and distribution and with strong central and state Jawaharlal Nehru National Solar Mission government ties. Mission Objectives “The objective of the Mission is to create a policy and regulatory environment which provides a predictable incentive structure that enables rapid and large-scale capital investment in solar energy applications and encourages technical innovation and lowering of costs.” – JNNSM Mission document. Some Salient Features • The Mission seeks to lay out an enabling policy framework for a three phased deployment of 20,000 MW of solar power by 2022; Phase I This is a preliminary information document that lays out deployment target is 1,000 MW by 2013. the opportunity for a equity investors to join the • Establish a single central nodal agency (NVVN) for consortium that EcoUrja is building to develop solar signing Power Purchase Agreement (PPA) with solar power project opportunities in India. developers. • 25 year PPA to be signed. Overview • Solar power tariff determined by Central Electricity Regulatory Commission (CERC). India is a country with vast solar energy potential. About • NVVN will establish irrevocable revolving Letter of 5,000 trillion kWh per year energy (theoretical) is Credit (LCs) in favour of Solar Power Developers incident over India’s land area with most parts receiving prior to commencement of electricity supply from 4-7 kWh per sq. m per day. Thus both types of solar the proposed Solar Power Plant. technologies, solar thermal and solar photovoltaic can be harnessed to meet the growing energy demands of Mission Implementation the country. From current power generation capacity of JNNSM has been launched by the GoI and the State 160GW, India will need to increase to nearly 800GW by Governments in cooperation with NTPC (National 2030 to achieve a sustainable growth rate of 8%, Disclaimer: This is not a prospectus. This is an initial information document and the information presented here is subject to changes. Investment decision should not be based on this document alone. Delhi London Madrid www.Eco
  2. 2. Thermal Power Corporation – India’s largest power 70:30 debt and equity split. The useful life of each generation utility, with current capacity of 30GW) and project is 25 years. the Central Electricity Authority. This Mission will be Based on JNNSM project guidelines, the feed-in tariff implemented by an autonomous Solar Energy Authority guaranteed by the Power Purchase Agreement (PPA) to embedded within the existing structure of the Ministry be signed with NTPC Vidyut Vyapar Nigam Ltd (NVVN) – of New and Renewable Energy. the designated central nodal agency, is expected to be Key Nodal Agency between Rs. 17 and Rs. 19. NVVN, a wholly owned subsidiary of NTPC, is the At specified capex and opex levels, the tariff rate is designated nodal agency for entering into PPAs with expected to generate an ROE (Return on Equity) of 19% solar power developers to purchase solar grid feeds of in the first 10 years and 24% in the following 15 years. 33KV and above, in accordance with tariff and PPA duration as fixed by CERC. EcoUrja is seeking a strategic partner with interest in developing solar parks in India. The modules will be NTPC (89.5% owned by GoI) is NVVN’s holding company. ground mounted, in series and parallel strings, with full It owns and operates 27,850MW of capacity across 22 protection as per IEEE standards, against grid over plants in 12 Indian states. In FY08, it had revenues of Rs. voltage or frequency, islanding and all other fault 419bn and an EBITDA margin of 25.2%. NTPC is rated conditions. Suitable lightening protection and earthing ‘’AAA’’ - CRISIL & ICRA, “BBB- stable“- Fitch. systems will be installed for safety of personnel and protection of the equipment. Opportunity The Government of India (GoI) has launched a new initiative, Jawaharlal Nehru National Solar Mission Project Location(s) Rajasthan & Various Technology Solar PV (JNNSM), aimed at attracting investment and expediting For each project and streamlining the process for setting up solar power Installed Capacity 2MW Project Cost (Capex only) c. Rs 34 Crores projects. Project useful life for Solar PV 25 years projects as per CERC tariff guidelines In the backdrop of this initiative, EcoUrja proposes to Projected Debt: Equity 70:30 build a pipeline of solar projects, primarily using Photo- Estimated ROE based on a 1MW 19% for First 10 yrs project as per CERC tariff guidelines 24% for remainder of the Voltaic (PV) technology. At present, we are exploring project life Expected feed-in tariff Rs. 17 – Rs. 19 project development opportunities for the installation of grid connected up to 25MW solar PV generation units (solar parks) based on a design, build, finance, operate and own basis. The capital expenditure per MW solar park is estimated at Rs. 16 - 18 million (c. USD 3-4 million per MW) and is expected to be funded through a Disclaimer: This is not a prospectus. This is an initial information document and the information presented here is subject to changes. Investment decision should not be based on this document alone. Delhi London Madrid www.Eco
  3. 3. Next Steps As per JNNSM guidelines, project developers seeking to build and operate solar parks are required to submit th projects for registration under the scheme by 30 June 2010. If the project meets the empanelment/registration criteria, the developers are expected to be invited for subsequent discussions and actions for setting up the project(s). List of key next steps: Key Activities Status Date EcoUrja Technical JV with CYMI, Spain Completed Feb-10 Identification of land up to 500 Acres Completed Mar-10 Land acquisition In progress Apr-10 Technical feasibility of land for solar In Progress June-10 Submission of Applications with In Progress June-10 documents for Registration Selection of Projects by Central September 15, Empowered 2010 Committee Signing of MOU September 30, 2010 Signing of PPA and PSA October 31, 2010 Financial Closure of the Project 3 months from date of signing of PPA Commissioning of the Project From the date of signing of PPA 12 months Disclaimer: This is not a prospectus. This is an initial information document and the information presented here is subject to changes. Investment decision should not be based on this document alone. Delhi London Madrid www.Eco
  4. 4. EcoUrja Team of two private equity backed businesses. Before running his own business, CM was the finance The EcoUrja management team has significant director of a specialist financial services group and experience in power generation (renewable and non- previously worked for an investment bank. CM is a renewable), transmission and distribution. The team Chartered Accountant and a graduate of the London members have knowledge and experience in all the Business School. facets of managing infrastructure assets; including procuring, financing and operating infrastructure RB – RB has 10 years of professional assets in India. Additionally, EcoUrja has an exclusive experience in project management and partnership arrangement with a leading provider of business development. He has delivered turnkey solar project solutions (including EPC several multi-million, complex, cross-border projects services) in order to develop and operate solar for large multinational industrial clients in over 20 projects for the Indian market. countries. He received his B.Engg in Electrical Engineering from New South Wales University, and an Summary of EcoUrja team experience: MBA from London Business School. AK – AK has over 26 years of experience in power equipment manufacturing, sourcing, UM – UM has over 9 years of experience distribution and transmission systems. He has worked as a corporate finance professional. He extensively in technical and senior managerial roles in has worked as a financial advisor on the thermal and solar energy sectors. Most recently several significant transactions in the industrials and he served as the CEO of a major distribution utility infrastructure sectors. He recently served as an AVP supplying electricity to one of India's largest cities. He in the Corporate Finance team of a leading global received his Bachelors in Engineering from IIT Kanpur. Infrastructure Finance Advisory House. UM has significant practical knowledge about the renewables HB – HB has over 35 years of technical and sector in India. UM is a Chartered Accountant, and an managerial experience in the power sector MBA from London Business School. in generation, transmission and distribution. He recently served as the CEO in the EPC KG - KG has 11 years business Division of one of India’s largest private sector power development and strategy experience in generators. HB also has significant knowledge of the infrastructure and Energy sector. He power trading, tariffs and regulatory regime in the has executed organic and inorganic growth context of the Indian market. HB is an alumnus of IIT infrastructure projects worth more than 600 million Kharagpur and an MBA from XLRI. dollars. Most recently he served as a senior management executive to one of the world's largest CM – CM is a successful entrepreneur with cement companies. He received his Bachelors in over 30 years experience in the financial Electrical Engineering from Sydney University and services sector. He has been the Managing Director MBA from INSEAD. Disclaimer: This is not a prospectus. This is an initial information document and the information presented here is subject to changes. Investment decision should not be based on this document alone. Delhi London Madrid www.Eco