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Simran Wind becomes first developer to cross 100MW in India’s Renewable Energy Certificate Scheme

According to reports, Simran Wind Project Private Limited has become the first project developer under the Renewable Energy Certificate scheme to cross the 100 MW mark. The company reached the milestone when it won accreditation for a 10.5 MW wind energy project in Tamil Nadu recently. The total capacity accredited by the company now stands at 102.9 MW.

The company had announced ambitious expansion plans in Tamil Nadu. It has signed power purchase agreement with the Tamil Nadu Electricity Board at Rs 2.50 per kWh, the annual pooled purchase cost defined by the Central Electricity Regulatory Commission for FY 2011-12. With a reasonable PLF of 25%, the accredited wind energy capacity is expected to generate over 225 million kWh and about 2,25,350 RECs annually.

Simran Wind Project is a subsidiary of the Techno Electric and Engineering group (BSE:533281). The company wind energy projects in Tamil Nadu and Gujarat. One of its projects wind generation capacity 21 MW has also been registered under UN’s Clean Development Mechanism with capacity to generate 49,880 CERs annually.

The company has ambitious expansion plans and had recently offloaded 7 percent stake to the International Finance Corporation (IFC), an investment arm of the World Bank. IFC also agreed to purchase CERs generated from company’s wind projects till 2020. The company plans to increase its generation capacity to 1250 MW by FY2017. The five projects submitted under the REC scheme are part of an expansion plan under which the company plans to commission 125 MW of wind energy generation capacity.

Several wind energy project developers from the Tamil Nadu have submitted their projects under the REC scheme. One of the reasons for the strong flow of wind energy project from the state is the higher returns expected under the REC scheme. The TNEB offers Rs 3.39 per kWh to wind energy developers as wind energy feeding tariff while the developers stand to earn around Rs 4 per kWh through the PPA and REC sale. The developers can earn even more through third-party, open access sale or sale through the power exchanges.

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