As Panchabuta had earlier reported, Solairedirect, France’s second largest solar power company, plans to raise around Rs 3 billion in rupee denominated loans over the next six months to fund its project target of roughly 25 mega watt (mw) of solar power projects in India in the financial year 2011-12.
Thierry Lepercq, chairman of Solairedirect,had earlier said, “We are in talks with various banks in France such as Rabobank apart from a few private equity players to participate in the fund raising activity. We expect the money will be raised by the time the National Solar Power Mission and other projects come up for construction in the second half of 2011.”
The funds will be used to finance projects under National Solar Power Mission, Maharashtra Generation Company, and projects under Gujarat government’s power development schemes, he said.
Gaurav Sood, managing director of Solairedirect Energy India, said Solairedirect will deliver low cost and high value kilo watt hour (kwh) through optimisation of all critical elements like system cost and performance, electrical production, financing cost and shareholder return.
Further the chairman of Solairedirect, Lepercq said, “We have already reached a levellised cost of energy (LCOE) of Rs 9 per unit on projects in France, with a technology and industrial roadmap to cut this cost to Rs 6 per unit within two years. This will help us to meet the demand for low tariff on the lines of fossil fuels,”
According to reports today, Solairedirect Energy India is in talks with the Gujarat government to set up a 20 MW plant at the Solar Energy Park in Kutch at an estimated cost of 300 crore. “We see ourselves as an independent power producer, or IPP, for this project which will be in Phase-III of the solar park,” Solairedirect Energy India managing director Gaurav Sood said.
The company is a subsidiary of French solar major Solairedirect. Sood said the 300-crore project would have 75% debt component, for which talks were on with lenders. Overseas pension funds and others looking for assured returns of 15-16% for the 20-25 years of the project have evinced interest, he added.
Sood said registration of the proposed project could happen by early next month.
“Initially, the project will be ours and later we could bring in other investors,” Sood said. The company could also look at picking stake in the other projects registered at the solar park in the earlier phases, he added.
“We did not participate in Phases I and II, but we are in talks with those who bagged projects then, to take up an equity stake. While we have a huge reference base in France, we need to build reference projects in India. This route allows us to do so quickly,” Sood said.
With most solar park projects likely to have a 25:75 equity-debt ratio, banks and financial institutions were likely to look for power purchase agreements (PPAs) with state governments or state power utilities.
Sood said that if they were able to sign PPAs of over 150 MW with state governments, they could even set up manufacturing facilities in each state.