solar power article

8/10/2019 Solar Power Article

1/13

CRISIL InsightJuly 2014

Growth Outlook for Indian Solar Sector: FAQs


2/13

2

CRISIL Insight

Analyt ical Contacts:

Pawan Agrawal

Senior Director CRISIL Ratings

Email: [email protected]

Manish Gupta

Director CRISIL Ratings


Ramesh Karunakaran

Associate Director CRISIL Ratings


Shilpi Keshari

Senior Rating Analyst CRISIL Ratings

Email:[email protected]

Kartik Shetty

Rating Analyst CRISIL Ratings

mailto:[email protected]:[email protected]


3/13

3

Growth Outlook for Indian Solar Sector: FAQs

CRISIL rates 15 single-asset solar special purpose vehicles (SPVs) installed under the central

governments Jawaharlal Nehru National Solar Mission (JNNSM) Phase 1 and other state level

schemes (please refer table 4 for detailed rating list)with capacities totaling 120.5 megawatts (MW).

CRISIL also has ratings on five solar EPC (engineering, procurement, construction) players 1and five

solar photovoltaic (PV) module manufacturers2

, and provides solar grading coverage for over 90 PV

and water heating-based system integrators.

Chart 1, below captures the rating category of the CRISIL rated solar SPVs with close to 60% of rated

projects in the investment grade.

Chart 1: Rating distr ibution of solar SPVs

^Includes one 25 MW under construction solar thermal power project

CRISIL in this article analyses the critical factors that will drive the growth of the solar energy sector.

The entire article has been structured in the form of Q&As. The Q&As analyse the role of government

support, pre-commission and operational risks in the solar power projects, impact of recent anti-

dumping issue, counterparty credit risks, and emerging large scale players in the sector.

1. What has kept solar capacity growing and what will dr ive future growth?

Solar power in India has witnessed impressive growth in a short span of time from just 35 MW as of

March 2011 to a respectable 2,647 MW as of March 2014 (Chart 2). The steep growth in these three

years has come on the back of a favourable policy environment, particularly the JNNSM scheme, and

Gujarats solar policy.

CRISIL-rated solar projects (size in MW) The median rating of pro jects is BBB

30.00

90.50

JNNSM State^

9 Projects

6 Projects

2

76

A Category BBB Category BB and below

1Enrich Energy Pvt Ltd (rated CRISIL BB+/ Stable/ CRISIL A4+) ,Novus Green Energy Systems Pvt Ltd (rated CRISIL BB/ Stable/ CRISIL A4+), Alectrona energy

Pvt Ltd (rated CRISIL BB-/Stable/ CRISIL A4+ [Placed on 'Notice of Withdrawal']), Refex Energy Ltd (rated CRISIL BB+/ Stable/ CRISIL A4+) and Photon Energy

Systems Limited (Rated CRISIL C/ CRISIL A4)2Tata Power Solar Systems Ltd (rated CRISIL A/Negative/ CRISIL A1), HHV Solar Technologies Pvt Ltd (rated CRISIL B-/Stable/CRISIL A4), Vega Solar Energy

Private Limited (rated CRISIL B-/Stable/ CRISIL A4), Surana Ventures Ltd (rated CRISIL BB+/Stable/ CRISIL A4+) and E mpire Photovoltaic Systems Private

Limited (rated CRISIL D)


4/13

4

CRISIL Insight

JNNSM has opted for the bid-based tariff route in Phase 1 and bid-based viability gap funding inPhase 2 (batch 1). This is further aided by government support in the form of infrastructure such asland, accessibility via roads and grid connectivity. Gujarat, for instance, has provided a solar park withall infrastructure in one place where multiple projects can be commissioned.

Indeed, Gujarat has become an attractive destination for solar power projects thanks to its policy ofattractive long-term preferential tariffs, creditworthiness of its state distribution company (discom) andhigh level of solar radiation or insolation.

Around 296 MW of capacity under the Renewable Energy Certificates (REC) mechanism has come upduring 2012-13, mainly in Rajasthan, MP and AP. However, the attractiveness of this route hasdecreased due to a failure on the governments part to enforce the Renewable Power Obligations(RPO) mechanism, which creates demand for REC. Limited pricing visibility (CERC has fixed theprices for these certificates only till 2017) of the mechanism has further eroded its attractiveness.

CRISIL believes the future of the REC mechanism is uncertain unless the RPO is strictly enforced bythe government. The capacity addition though this route is expected to come down.

Source: MNRE website

Further, the technology curve for solar power is evolving. In the past two years, capital cost per MWhas fallen from Rs.14 crore per MW to less than Rs. 8 crore per MW, resulting in average solar tariffrates falling from Rs. 15 per kWh to Rs. 8.0 per kWh.

CRISIL believes that for solar power projects to achieve grid parity, capital cost needs to fall belowRs. 5 crore per MW. And until grid parity is achieved, government support in terms of preferential tariffor viability gap funding remains critical for growth in solar power.

Chart 2: Growth in solar capacity in India (in MW) Chart 3: Policy w ise break-up of 2,208 MW as onJanuary 31, 2014

10 35

941

1,646

2,647

Mar 2010 Mar 2011 Mar 2012 Mar 2013 Mar 2014

686.9

860.4

25.0

130.0

150.05.0

40.0

296.0

5.110.0 JNNSM

Gujarat

Karnataka

Madhya Pradesh

Maharashtra

West Bengal

RPO

REC

Private

CPSUs

Chart 4: Trends in solar pro jects capital cost

per MW

Chart 5: Solar power yet to achieve grid parity

17 17

14

10

8

13

15 1513 12

2009-10 2010-11 2011-12 2012-13 2013-14

RscroresperMW

Solar PV Solar Thermal

10.7

7.9

5.8 5.74.6

4.1 4.1 3.9 3.8 3.6

RupeesperkWh

Source: CERC Soucre: CRISIL Ratings


5/13

5

2. Given the credit risk prof ile of state discoms, what will dr ive growth?

For a state to be attractive to solar power developers, the level of solar radiation and credit profile of

the counterparty are crucial. For instance, Gujarat, which has high capacity of 860 MW under its solar

policy, represents a good combination of abundant radiation leading to healthy plant load factors(PLFs) and a creditworthy counter party in Gujarat Urja Vikas Nigam Ltd (GUVNL). By contrast, in

Rajasthan, of the 667 MW of installed solar capacity, none is under state policy due to

creditworthiness of its state distribution company (discom). (Charts 6, 7).

Chart 6: State discoms credit profile Chart 7: Annualised average solar radiation -- or

insolation -- map of India

Most states barring Gujarat have lagged in adding solar capacities. Creditworthiness of state discoms

and delays in implementation have played a key role in investor interest. In the near term, based on

bidding initiated in 2012-13, CRISIL believes close to 500 MW capacity will be added under state solar

policies mainly in Rajasthan, Uttar Pradesh, Punjab, Karnataka and Madhya Pradesh.

For states with high solar radiation but relatively high risk in terms of creditworthiness, the majority of

the capacity addition will come under the central governments JNNSM scheme. The creditworthiness

of the Solar Energy Corporation of India (SECI)3 provides comfort to investors. But developers are

finding it difficult to bid for larger projects as JNNSM has a cap on the maximum capacity that can beawarded, which leads to aggressive bidding

Hence, CRISIL believes the recent introduction of ultra-mega power projects (UMPPs) in the solar

sector will play a crucial role in providing scale and a creditworthy counterparty (SECI). The Ministry of

New and Renewable Energy has rolled out 4 UMPP projects with cumulative capacity of 15,000 MW

in Rajasthan (4000 MW), Gujarat (4000 MW), Ladakh (5000 MW) and Kargil (2000 MW). Groundwork

has already commenced for the Rajasthan project. Under this, SECI will be the sole counterparty

which will then sell the power to discoms. This initiative will help developers to not only bid for larger

projects but also have a creditworthy counterparty.

Source: MNRE websiteSource: CRISIL Ratings

3MNRE has established SECI as the executing agency under Phase 2 (batch 1) of JNNSM. SECI will sign power purchase agreements (PPA) for 25 years

with the project developers.


6/13

6

CRISIL Insight

3. Who are the players bidding for solar projects?

Competitive bidding and a sharp drop in tariffs of late have led to the emergence of serious solar

players with massive growth plans. Groups like Welspun Energy, Acme Group, Moser Baer Solar, Sun

Edison Energy India, Azure Power, Essel Infra, Green Infra and Lanco Solar are aiming at hugecapacities and a portfolio of solar projects in the medium term. They have consistently bid for new

projects across JNNSM and state schemes. These projects have a combined portfolio (operational

and under development) of ~1400 MW, accounting for close to 30% of the domestic capacity. Many

large companies are building their own EPC/O&M arms for competitive advantage, which are run by

professionals with vast experience in the solar industry.

Given the increasing competition and aggressive bidding in JNNSM Phase 2, the ability of the

developers to manage interest rate and forex risk will be crucial to returns from projects. Development

institutions such as the International Finance Corporation, the US Exim Overseas Private Investment

Corporation, and Germanys DEG have provided foreign currency loans of Rs. 20 billion to large

players. The companies are also backed by private equity monies estimated at Rs.~45 billion, ofwhich more than 60% -- or ~Rs. 28 billion -- has gone to the large groups.

CRISIL believes that as the industry matures, serious players will keep adding capacities and build a

significant portfolio of assets. This will help them look at pooling and securitisation of cash flows from

projects or refinancing through bonds.

4. How will the anti-dumping duty on solar panels impact the industry?

In May 2014, the Union Ministry of Commerce recommended levying anti-dumping duty on solar cells

imported from the US, Malaysia, and China. More than two-thirds of the projects in India currently use

imported solar panels. This will increase the cost of capital, thereby necessitating higher tariffs to

maintain project feasibility. The cost of a solar panel imported from the US will rise 50-60% with an

anti-dumping duty of $0.48 per watt, while those of Chinese panels will double with a duty close to

$0.81 per watt. For a solar power plant based on imported module from the US, capital cost will go up

by about Rs.2 crore per MW, which require more than 26% escalation in tariff if the internal rate of

return (IRR) is to be maintained at 15% as shown in the Chart 8. CRISIL believes that without the anti-

dumping duty to sustain solar power generation from 1,000 MW, annual subsidy support from

government should have to increase by Rs.3.0 billion (assuming grid parity at Rs.5.5 / kWh, IRR at

15% and imports from the US). However, higher subsidy support from government will be offset by the

anti-dumping duty that the government will receive on the imports.

Country of Import Anti-dumping duty

USA $0.48 per watt

China $0.81 per watt

Malaysia $0.62 per watt

Taiwan $0.59 per watt

6.6 7.08.4

6.57.9 8.3

Imported Domestic Imported from USAwith anti-dumping

duty

Capital Cost (Rs. Crs per MW)Tariff required for IRR at 15% (in Rs/ kwh)

Chart 8: Impact on tariff due to anti-dumping duty4

Table 1: Anti-dumping duty on solar panel impor ts

4CRISIL has assumed PLF of 19%, debt to equity ratio of 70:30, debt tenure of 12 years and interest cost of 12.50% for domestic credit and 8% for foreign

funding. The cost of capital is assumed at Rs.65.8 million/MW for a project based on imported modules assuming an exchange rate of Rs.60/USD.

Source: Ministry of commerce and Industry Source: CRISIL Ratings


7/13

7

The anti-dumping duty also puts in doubt the viability of 1,600 MW of solar projects being developedunder various schemes. Most of these were bid envisaging the use of equipment imported sans anti-dumping duty. For instance, under JNNSM Phase 2 (Batch 1), 375 MW of projects under the opencategory were bid aggressively with an average viability gap funding of just Rs.10.07 million per MW.CRISIL believes any increase in cost of capital will threaten the feasibility of these projects as returns

are already constrained (IRR 10-13%) due to aggressive bidding. This also does not augur well forsolar policies because many projects are already dragging due to creditworthiness issues of statediscoms. CRISIL believes higher cost of power will also thwart states from meeting their renewablepower obligations.

Today, solar panels are mostly imported from the US, China, Taiwan and Malaysia as prices there arelower. In addition, developers get access to cheaper funding. While the US has built capacities basedon superior technology, its Asian rivals enjoy economies of scale. India currently is relatively lesscompetitive in the solar equipment industry due to the lack of:

a) Technology-led innovationb) Economies of scale - the current manufacturing base in India is 700 MW cells (concentrated

with 4 major manufacturers) and 1,250 MW modules (fragmented with 80 players) against aglobal capacity of more than 100 GW

c) Backward integration No silicon wafer manufacturing capacity (a key raw material formanufacturing cells and modules)

Also, panel quality varies by manufacturer. CRISIL believes that domestic solar equipment industrywill take time to achieve scale, technological competitiveness, quality and backward integration. Inaddition, many of the domestic equipment players lack the creditworthiness to back their performancewarranties to solar power projects. With the imposition of anti-dumping duties on import from the USand China, CRISIL believes developers may look to other countries such as Japan, Germany,Singapore, and Korea for sourcing panels. Although, the players in these countries supply panels at acost slightly higher than imports from China or US, they maintain the quality standard and have thecreditworthiness to fulfill their warranties. Though the imposition of anti-dumping duty is detrimental to

solar power project developers, in the longer term, it will benefit domestic solar equipmentmanufacturers, including CRISIL-rated players like Tata Power Solar Systems Ltd (CRISILA/Negative/CRISIL A1).

5. What are the pre-commissioning risks to look out for in a solar project?

Like any power project, construction is a key risk in solar power projects. In CRISILs experience, mostof the solar power projects have witnessed low to moderate pre-commissioning risks. In general,construction complexity for solar PV projects is significantly lower than for thermal power projects.There are no moving parts like turbines and fuel conveyers and high pressure parts, whichsignificantly reduce risk levels. Modularity of construction and ability to start generating power in

phases also reduces pre-commission risks. Because the complexity is lower, even smallerconstruction firms can design and execute solar PV plants. However, for large plants, ability tomanage delays and cost overruns remains critical. A comprehensive EPC contract that provides afixed price, timeline based commitment helps in managing completion risk. Ease of availability of land,technology and evacuation infrastructure are also critical for solar power projects. For the CRISIL-rated portfolio, the technology risk has been low as more than 90% of the projects have opted for theestablished PV technology and all the PV projects rated by CRISIL are operational except for a 25MW concentrated solar power (CSP)5 project by Cargo Solar (Gujarat) Pvt Ltd (rated CRISIL BB-/Stable)6Developers prefer PV over CSP because of the latters complexity of technology.(Refer to Chart 9 & Table 2).

CSP technology captures sunlight through mirrors and lenses, converts that into heat energy, which, in turn, generates electrical energy through athermodynamic cycle. This is a more complex system than PV, where solar energy is directly converted to electrical energy through photovoltaic cells.6The 25 MW CSP project under Cargo Solar has been delayed for more than three years now due to land issues and disbursal of loans by the lending

consortium. The main concerns for the lenders are the minimal track record of CSP projects in India, which exposes the project to greater implementation and

stabilisation risks relative to PV technology.


8/13

8

CRISIL Insight

For the CRISIL rated portfolio, close to two-thirds of the projects were commissioned within thescheduled execution period, ranging from 8 to 12 months. Delays were only a few -- and mainly due toland clearance issues or evacuation infrastructure.

While three out of 15 projects were delayed because grid evacuation wasnt tied up on time, two weredelayed because of land availability. Compared with conventional projects, overall delays in solarprojects have been minimal at 2 to 4 months. CRISIL has observed longer delays in road projects dueto right-of-way issues and thermal projects due to fuel availability and linkage issues.

CRISIL believes that as the industry matures, the risks associated with technology, radiation data, andexperience of the EPC contractor will be mitigated to a great extent. However, uncertainties over landavailability and grid connectivity will remain a concern in the medium term and will continue to requiregovernment support. CRISIL believes facilitation by the government will boost investor confidence.

Table 2: Pre-commissioning and operational risks o f solar projects compared with other power projects

Risks Solar Wind Conventional energy

Project execution risks

Project constructionduration

Relatively low

Short (8-12 months)

Relatively low

Short (4 -6 months)

Relatively high

Longer time lines (36-48months)

Resource data risk

Data availability

Margin of error

Moderate to high

Operational data for last

2-3 years only;

Reasonable accuracy

attained

Moderate

Data for more than 10

years; Reasonable

accuracy attained

Not applicable

Risk linked to availability

of raw material viz. coal,

gas etc.

Technology ri sk Moderately evolving in

nature

Already evolved and

tested

Proven and tested

PLF risk

Low variability &

seasonality in solar

irradiance

High variability &

seasonality

Depends on

availability and

quality of fossil fuels

Selection of EPC & equipment supplier

Experience of the EPC contractor in solar power

projects lowers the risksPerformance guarantee by EPC & outputguarantee by manufacturer give visibility forfuture performance of the plant

Technology selection

The correct technology should be chosen based

on the irradiation & climatic conditionsThe PV technology with proven track record ispreferred globally, while the solar thermaltechnology is still to achive scale globally

Grid connectivity

Evacuation infrastructure is a key determinantas delay in getting grid connectivity has led toproject delays in the past

Land availabilit y

Selection of land with primary infrastructure inplace (road connectivity and water availability)is critical

Ease of acquisition of land is critical to meetproject timelines

Pre-commissioningrisks

Chart 9: Key pre-commissioning r isks observed in the CRISIL-rated portfo lio


9/13

9

6. What challenges do operational projects face?

The viability of a commissioned project depends on its ability to maintain healthy capacity utilisationfactor (CUF). This, in turn, is a function of the technology chosen, quality of module/ equipmentdesign, radiation levels and maintenance of the plant. In general, unlike wind power, solar radiation is

fairly stable from year to year with a low annual standard deviation (3% - 5%). CRISIL-rated projectshave witnessed CUF in the range of 18-20%7(Chart 10)as close to 80% of them are located in eitherGujarat or Rajasthan, where the radiation levels are relatively high compared with other states.However, some of the smaller projects under Rooftop PV & Small Solar Power GenerationProgramme (RPSSGP) have lower CUF of close to 14-16% (as observed in other RPSSGP projects)which impacts their debt service coverage ratio (DSCR).

In general, multi-crystalline silicon panels are considered to have relatively less risk with a proventechnology and long track record (30 years). In contrast, thin-film technology is relatively new.However, according to independent technical reports, thin-film technology is suited for countries likeIndia as with increase in temperature efficiency loss is lower than in crystalline silicon based PVpanels. In the recent times, cadmium telluride or CdTe-based thin-film has established a goodreputation with many projects in India showing preference for it.

In terms of maintenance risks, solar PV projects have no moving parts, which greatly reduces outagerisks. Modularity also makes maintenance easier. Solar modules are built in arrays, with each arrayproducing a percentage of the total output. Failure of one array does not affect the output of others.However, in India, dust accumulation on the front surface of the PV module reduces the solar radiationintensity. Pollution levels and weather influence the level of dust accumulation. Hence, ability to keepa clean surface becomes critical to maintain healthy CUFs.

Close to 50% of the CRISIL-rated solar power developers have mitigated technology and operationalrisks through long-term performance guarantees from solar module manufactures, along withoperation and maintenance contracts (fixed-price contracts with annual escalation). If panels degrade

much higher than expectations, the manufacturer will ensure the performance by either replacing orproviding additional panels. Hence, the creditworthiness and the structure of the performance contractbecomes critical for overcoming the performance and technology risk. Small equipment suppliers withmoderate track record have the risk of going out of business during the life of the project.

CRISIL believes the efficiency of solar panel will depend on exogenous factors and hence,

projects actual CUF over the medium term will remain a critical rating sensitivity factor.

Additionally, as the sector is evolving, its track record around module degradation and performancefailure of the equipment also remains critical. However, for a well-structured PV project withestablished technology, lack of moving parts reduces the operational risks.

Chart 10: CRISIL rated projects maintained healthy CUF in line wi th average

CUF for JNNSM Phase 1 pro jects

19% 20%

16% 17%

22%20%

18% 19% 17%19% 19% 20%

21%

17%

RPSSGP

Source: MNRE and SLDC websites

The average CUF for projects based in Gujarat and Rajasthan had been around 18% and 20%, respectively, over the past year. Solar irradiance in these

states has shown less variability over the years.


10/13

10

CRISIL Insight

7. How has the counterparty credit risk panned out for these solar projects?

The CRISIL-rated solar projects are healthy on this count, driven by creditworthiness of the

counterparty and robust debtor policy. All the projects have signed long-term power purchase

agreements (PPAs) for 25 years with close to 80% of them either with GUVNL or NTPC Vidyut VyaparNigam Ltd (NVVN; rated CRISIL AA+/Stable/CRISIL A1+). These counterparties have a track record

of timely payments, which supports the credit quality of solar projects.

These PPAs have adequate covenants for timely payment and penalties, thus ensuring high

probability of timely realisation of receivables. The track record of payments from GUVNL and NVVN

has been good its mostly done before or on time. The risk is further lowered by the presence of a

payment security mechanism in the case of solar power plants under both JNNSM and the state solar

policy (Table 3). CRISIL believes this security mechanism leads to efficient and structured flow of

funds, which strengthens the liquidity profile.

Table 3: Typical payment securit y mechanism in solar power projects ensures cash trapping

LC mechanism PPAs are supported by unconditional, revolving and irrevocable letter of credit (LC) given by

counterparty. Projects have a LC extended by the off-taker valid for 1 year and equivalent to

estimated average monthly bill of the year.

DSRA Account About two-thirds of the rated projects have their term debt secured by Debt Service Reserve

Account (DSRA) equivalent to at least 3 months of interest and principal payment, ensuring

adequate and timely debt servicing.

TRA/Escrow account In 60% of the rated projects, the payments are routed through escrow/ TRA account, which

ensures efficient cash-flow structure.

Clauses under PPA For better receivables management, the PPA provides for pre-payment options to the off-taker inexchange of discounts (1-5%). Also, in case of any delay, the counterparty will have to pay late

payment surcharge (the SBI base rate + 7% in the case of GUVNL).

Unless the developer flouts the agreement terms regarding maintaining minimum shareholding,

or any other material clauses such as bankruptcy, the off-taker will have to purchase power at

the agreed rate for 25 years.

8. To what extent does the tariff structure impact returns?

All projects rated by CRISIL have signed long-term PPAs, which provide strong revenue visibility.

CRISIL has observed that the tariffs for solar power have been coming down gradually, driven by

lower PV module prices.

Additionally, the competitive intensity in the sector has increased, leading to aggressive bidding by

companies. But they have mitigated the risk of this to an extent by structuring debt such that DSCRs

remains healthy. Most of the CRISIL-rated projects have availed of long-term debt with tenures

ranging from 10 to 13 years. Some projects have also availed of buyers credit in foreign currency,

which tends to be cheaper and helps reduce costs during the construction phase. Around 15% of

CRISIL-rated debt in solar projects is foreign currency debt. In recent times, many solar projects are

looking for refinancing through partial guarantees from financial institutions to reduce the interest

costs.


11/13

11

Going forward, with increasing competitive intensity in tariff bidding, the ability to reduce the capital

and interest cost, improve CUF, and elongate debt profile will be the key to the credit risk profile of

projects.

Source: CRISIL Ratings; Dates represent commercial operations date (COD) of the projects

9. What other credit-related issues were observed in CRISIL-rated projects?

Funding mix, extent of investor interest in solar power projects, and support from promoters are some

of the additional key factors analysed by CRISIL. On the equity front, in some cases, the promoters

arranged funds from private equity players. For instance, Eoxis, a private equity fund specialising in

wind and solar energy projects,has invested Rs.362 million in SunBorne Energy Gujarat One Pvt

Ltd (rated CRISIL BBB/Stable).

To improve bankability, in some cases, the promoters provided corporate guarantees. To manage

costs during construction, some projects received unsecured loans from promoters or took low-cost

foreign currency debts.

Many big players are also looking at a portfolio approach, housing solar projects at various SPVs but

holding them centrally through a holding company backed by private equity investment. A diversified

portfolio of solar assets, spread geographically with varying counterparty credit risks, will enable

developers to support their credit profile.

Table 4summarises the key parameters for all the CRISIL-rated solar power projects. Projects with

longer debt tenure registering decent CUF at higher tariffs and good counterparty have a healthier

credit profile, while the presence of payment security mechanism such as DSRA and TRA account

provide additional liquidity comfort.

Chart 11: Trend in projects tariff (with COD) and DSCR in CRISIL-rated port fol io

0

2

4

6

8

10

12

14

16

18

0

2

4

6

8

10

12

14

16

18

20

CapitalcostinRscrores/MW

TariffinRs/Unit

Tarif f (Rs/unit) Capital cost (Crs/MW)

Oct-11

Mar-12

Dec-12

Feb-12

June-12

Jan-12 Jan-12

Dec-11Dec-12

Feb-12

Feb-13Dec-12Dec-12

Feb-12

1.2 1.31.21.7 1.4 1.1

RPSSGP

1.4


12/13

Table 4: List of rated solar power projects wi th key parameters

articularsPalace

solar

Astonf ield

Solar

Alex

spectrum

Sunborne

Energy

Waa

solar

Aatash

PowerS.J.Green

Euro

Solar

Lexicon

Vinaya

KVR

constructionSunkon

Molisati

Vinimay

Cargo

solar#

pacity in MW 15 5 5 15 10.25 5 5.125 5.125 10 2 10 1 25

cation Gujarat Rajasthan Rajasthan Gujarat Gujarat Gujarat Gujarat Gujarat Rajasthan Jharkhand Gujarat Orissa Gujarat

unterparty GUVNL NVVN NVVN GUVNL GUVNL GUVNL GUVNL GUVNL NVVN JSEB GUVNL GRIDCO GUVNL

OD

mm-yy) Mar-12 Oct-11 Feb-12 Jun-12 Dec-11 Dec-12 Dec-12 Dec-12 Feb-13 Jan-12 Dec-12 Jan-12

Exp Nov-

14

Year PPA Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes

Yes

(15 years

PPA)

pital cost

s. Cr/MW)11 15 15 14 15.06 10.12 9.76 9.76 10.5 11.5 13.8 15.5 30

bt to equity 70:30 70:30 65:35 70:30 65:35 83:17^ 70: 30 70:30 70:30 70:30 70:30 70:30 70:30

riff (Rs/unit)

Rs.15 (for 1-

12 years) ;

Rs.5

thereafter

17.91 12.5

Rs.15 (for 1-12

years) ; Rs.5

thereafter

Rs.15 (for

1-12 years)

; Rs.5

thereafter

Rs.11.25

(for 1-12

years) ;

Rs.7.50

thereafter

Rs.9.98 (f or 1-

12 years) ; Rs.7

thereafter

Rs.9.98

(for 1-12

years) ;

Rs.7

thereafter

8.69 17.91 12 18.52

Rs.11 (for

1-12

years) ;

Rs.4

thereafter

erating Margin Above 90% Above 90% Above 90% Above 90% Above 90% Around 90% Above 90%Above

90%

Above

90%Above 90% Above 90%

Around

90%

Above

90%

RA Yes Yes Yes Yes Yes No Yes Yes Yes Yes Yes No No

crow/TRA

countNo Yes Yes Yes Yes No Yes Yes Yes Yes Yes No No

rex exposure No Yes Yes Yes Yes No No No No No Yes No -

dging for Forex - Un-hedged Un-hedged Fully Hedged Un-hedged - - - - -Fully

Hedged- -

bt tenure - 14 14 12 12 to 13 10.5 12 11 15 9 12 - -

edit Rating CRISIL A CRISIL A- CRISIL BBB+ CRISIL BBBCRISIL

BBB

CRISIL

BBB-CRISIL BBB-

CRISIL

BBB-

CRISIL

BBB-CRISIL BB CRISIL B+ CRISIL B+

CRISIL

BB-

rgo Solar is based on solar thermal technology CSP; ^Rs.122 million unsecured debt from promoters tr eated as debt


13/13

About CRISIL Limited

CRISIL is a global analytical company providing ratings, research, and risk and policy advisory services. We are

India's leading ratings agency. We are also the foremost provider of high-end research to the world's largest

banks and leading corporations.

About CRISIL Ratings

CRISIL Ratings is India's leading rating agency. We pioneered the concept of credit rating in India in 1987. With

a tradition of independence, analytical rigour and innovation, we have a leadership position. We have rated over

75,000 entities, by far the largest number in India. We are a full-service rating agency. We rate the entire range

of debt instruments: bank loans, certificates of deposit, commercial paper, non-convertible debentures, bank

hybrid capital instruments, asset-backed securities, mortgage-backed securities, perpetual bonds, and partial

guarantees. CRISIL sets the standards in every aspect of the credit rating business. We have instituted several

innovations in India including rating municipal bonds, partially guaranteed instruments and microfinance

institutions. We pioneered a globally unique and affordable rating service for Small and Medium Enterprises

(SMEs).This has significantly expanded the market for ratings and is improving SMEs' access to affordablefinance. We have an active outreach programme with issuers, investors and regulators to maintain a high level

of transparency regarding our rating criteria and to disseminate our analytical insights and knowledge.

CRISIL Privacy Notice

CRISIL respects your privacy. We use your contact information, such as your name, address, and email id, to fulfil yourrequest and service your account and to provide you with additional information from CRISIL and other parts of McGraw HillFinancial you may find of interest.

For further information, or to let us know your preferences with respect to receiving marketing materials, please visitwww.crisil.com/privacy. You can view McGraw Hill Financials Customer Privacy Policy at http://www.mhfi.com/privacy.

Last updated: May, 2013

Stay Connected | Twitter | LinkedIn | YouTube | Facebook

CRISIL Limited

CRISIL House, Central Avenue, Hiranandani Business Park, Powai, Mumbai400076. India

Phone: +91 22 3342 3000 | Fax: +91 22 3342 3001

www.crisil.com
http://twitter.com/CRISILLimitedhttp://twitter.com/CRISILLimitedhttp://www.linkedin.com/company/crisil?trk=cp_followed_name_crisilhttp://www.linkedin.com/company/crisil?trk=cp_followed_name_crisilhttp://www.youtube.com/user/CRISILLimitedhttp://www.youtube.com/user/CRISILLimitedhttp://www.facebook.com/CRISILLimitedhttp://www.facebook.com/CRISILLimitedhttp://www.facebook.com/user/CRISILLimitedhttp://www.youtube.com/user/CRISILLimitedhttp://www.linkedin.com/groups/CRISIL-Corporate-Group-100623?gid=100623http://twitter.com/CRISILLimitedhttp://www.facebook.com/CRISILLimitedhttp://www.youtube.com/user/CRISILLimitedhttp://www.linkedin.com/company/crisil?trk=cp_followed_name_crisilhttp://twitter.com/CRISILLimited

solar power article

Documents