IFC has been roped in as advisor for 600 MW solar in UP; NHPC launches subsidiary for renewable energy, small hydro and green hydrogen projects; Azure Power refinances 600 MW solar in Rajasthan; Power Ministry issues amendments to short-term power procurement.
IFC to back 600 MW solar in UP: The World Bank Group's International Finance Corporation (IFC) has signed up to play an advisory role for the development of 600 MW solar power capacity in Uttar Pradesh's (UP) Jhansi district on public private partnership (PPP) model. This capacity is planned to be developed by TUSCO Limited and Uttar Pradesh New and Renewable Energy Development Agency (UPNEDA). TUSCO is a joint venture between THDC India Limited (THDCIL) and UPNEDA. The solar parks will be set up under the Ultra Mega Renewable Energy Power Park (UMREPP) Scheme of Ministry of New and Renewable Energy (MNRE).
NHPC sets up RE subsidiary: State-owned hydropower utility NHPC Limited has set up NHPC Renewable Energy Limited (NREL) as its wholly owned subsidiary to undertake development of renewable energy, small hydro and green hydrogen based businesses of the group. The new platform will develop renewable energy projects either under standalone mode or through formation of special purpose vehicles (SPV) in collaboration with other agencies. The group's current installed power generation capacity stands at 7.07 GW which comprises 100 MW of solar and wind energy plants. Another 5.99 GW hydro power and 105 MW of solar plant capacity is under construction. As it looks to diversify beyond hydro power generation, it recently signed a letter of intent with the Rajasthan Renewable Energy Corporation Limited (RRECL) for the development of 10 GW of renewable energy projects/parks in Rajasthan (see MoUs & LOIs For 90 GW+ RE In Rajasthan).
Azure Power refinances 600 MW solar: Azure Power has successfully refinanced its existing project financing facility of INR 23.50 billion ($313 million) for its largest project with 600 MW solar capacity in Rajasthan. The project has been operational since December 2021 by the company's SPV Azure Power Forty Three Pvt Ltd. The company's CFO Pawan Kumar Agrawal said the facility will result in substantial savings in interest cost and will improve the project IRR significantly. The refinancing has been completed at a rate of interest of 7.2% per annum, fixed for 42 months.
Amendments to short-term power procurement: The Ministry of Power (MoP) has introduced amendments to the Guidelines for Short-Term Procurement of Power by Distribution Licensees through Tariff based Bidding Process. It covers the period of more than 1 day to 1 year. It has been amended to address the issue of sale of power by generators in the market without the consent of procurer. As per the amendments, in case the seller fails to offer contracted power as committed and sells it to any other party without the original procurer's consent, the latter will be eligible to claim damages in addition to liquidated damages. Additionally, seller may be debarred from participating in power exchanges and barred from scheduling this power under any kind of contract from that generating station for a period of 3 months. The notification is available on the ministry's website.
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