This follows the announcement made in December 2009 when Indian Energy signed a contract with ReGen Powertech (ReGen) for the construction of a 49.5MW wind farm at Theni in the Indian state of Tamil Nadu.
These three initial turbines are part of the first phase of development of the project, which will see a further eight 1.5MW turbines constructed within the next five months to give a total generating capacity of 16.5MW. The second construction phase is due to start in June 2010. Upon completion, this will take the total generating capacity at Theni to 49.5MW by December 2010.
The Tamil Nadu Electricity Board (TNEB) has approved the power purchase agreement (PPA) with Indian Energy. The company will enter into the 20 year PPA with TNEB for the sale of the power generated at Theni at a rate of INR3.39 per kWh as governed by the current state tariff order.
In addition, the project should be eligible for the generation based incentive scheme that has been revealed by the government of India and, as a result, will receive a further INR0.5 per kWh in revenue.
The company also intends to establish the project as a ‘clean development mechanism’ under the Kyoto protocol, and as a result both phase one and two are expected to generate approximately 120,000 certified emission reductions per annum.
Rupert Strachwitz, CEO of Indian Energy, said: “We are delighted to report this early success at Theni which confirms that we remain on track for having 11 1.5MW turbines up and running by June and a further 22 1.5MW turbines by the end of the year. The fact that these three turbines have already begun to contribute to earnings demonstrates how quickly we can deploy capital to generate returns and develop what we believe will be a long term and sustained income stream.”
