Renewable Energy
Renewable Energy
We provide end to end consultancy for Renewable Energy Projects.
At Brownearth, we provide end-to-end consultancy for medium to large size Renewable Energy Projects in India with 25 years of government power purchase agreements. (Investment size from 250 Million USD to 2 billion USD).
We offer projects with full resource study (both wind & solar) and identify land parcels.
We secure mandates from investors and arrange joint bidding with developers for the SECI projects. Upon winning the bid the investor can then own between 75 to 100% of the project. Developers are open to equity participation from 0 to 25%.
Table of Content-
- Industry Outlook
- India’s Renewable Energy Plan
- SECI – Nodal agency for Renewable Energy
- Renewable Energy Developers
- Industry Outlook
1. India’s Renewable Energy Plan
2. SECI – Nodal agency for Renewable Energy
3. Renewable Energy Developers
1. India’s Renewable Energy Plan
- The Government of India has set the targets to achieve the total installed capacity by renewable energy sources to be 175 GW by FY2022 and further to 450 GW by 2030. Solar Power of 100 GW & Wind Power of 60 GW are the primary targets of Government.
- As per Government’s assessment country’s total potential for Wind Power & for Solar Power is 302 GW &748 GW respectively. As of Mar-20, the Wind installed capacity is 37 GW & Solar installed capacity is 35GW only.
- Government through its central (Solar Energy Corporations of India) and state nodal agencies is conducting regular auctions to ful fil the renewable energy targets, ensuring assured market to Renewable Energy Investors.
2. SECI – Nodal agency for Renewable Energy
- Solar Energy Corporation of India (SECI) is an entity of the Ministry of New and Renewable Energy(MNRE), established to facilitate the implementation of the National Solar Mission and facilitate progress in Renewable Energy Sector
- SECI has conducted auctions for more than 11+ GW capacity for Wind Power Projects & 16+ GW for Solar Power Projects so far.
3. Renewable Energy Developers
- Most of the Wind/Solar Energy Projects in India comprised of three entities; IPP (Independent Power Producers), OEM (Original Equipment Manufacturer i.e. WTG/ Solar Module suppliers) & Project Developer.
- Major suppliers do not want to take the turnkey contracts as they are only willing to deliver the WTG/Modules at site. In such cases Project Developers play a very pivotal role in the Development of the projects. The Developer activities are major significant contributor towards the project such as –
- Wind Data Collection & Monitoring
- Land Identification & Procurement
- Load Flow Studies
- Power Evacuation Infrastructure
- Securing all Statutory Approvals etc.
- Project Developers bear the major risk portion of the project development, helping IPPs to achieve the project commissioning status within the stipulated timelines.
We also Provide end to end consultancy for
Private Sector Projects
- Indian domestic & global AAA rating companies can set up their own power projects, a project which would be owned by the captive client.
- The financing liability will be in the books of the developer. the highest credit-rated captive consumer of power would sign “take or pay” (a minimum equated quarterly installment to repay the financing of the project along with the returns to the financier.
- The project can be funded through a debt-equity mix of 70-30 and in such cases the investor can expect an equity IRR in the range of 15% plus.
Project Proposal
- Though the ownership of assets is with the captive consumer from day zero all the project finance securities such as mortgage of land, the first charge over the assets, and payment through an escrow mechanism would be made available.
- We provide end-to-end consultancy and have access to developers with wind mast (more than 300 masts spread all over India) have projects to the tune of 2 GW of wind & 1 GW of solar.
- We can offer a project with full resource study (both wind & solar) & with the identified land parcels with close proximity for evacuating the power.
- We secure mandates from investors and arrange joint bidding with developers for the SECI projects. Upon winning the bid the investor can own between 75 to 100% of the project. Developers are open equity participation from 0 to 25%.
High-Level Financial Estimates
- In the case of SECI bids (Government Owned Entity) which sign the 25 years fixed tariff power purchase agreements (PPA). In the case of Wind the CAPEX of approx. 900k USD, latest WTGs & well studies wind sites, the investors can expect equity IRR between 11% to 12%. In the case of Solar with the CAPEX of approx. 600k USD it would be in the range of 10% to 11%. In the case of highly credit-rated captive power, consumer investors can expect an equity IRR of approx. 15% plus through a structured financial securitization transaction.