Mahindra Renewables Pvt Ltd, a wholly owned subsidiary of Mahindra Susten Pvt Ltd, has achieved financial close for its 250 MW Solar Power Project, to be located in the Rewa District of Madhya Pradesh.
YES Bank Ltd will provide financial assistance in the form of project debt to the extent of INR 7.5 billion ($115.5 million), and from other financial institutions up to INR 2 billion ($30.8 million).
The project is part of the 750 MW Rewa solar park, which is one of the largest solar parks in the world. It is expected to generate over 525 Million kWh energy and plans to sell 78% of the generated electricity to Madhya Pradesh electricity distribution utilities, and 22% to the Delhi Metro Rail Corporation (DMRC) Ltd.
Mahindra Renewables won this project in a competitive bidding process opened by Rewa Ultra Mega Solar Ltd, a 50:50 joint venture between Madhya Pradesh Urja Vikash Nigam Ltd and the Solar Energy Corporation of India(SECI).
The company won the capacity at a levelized tariff of INR 3.3 ($0.051)/kWh. The other winning bidders were ACTIS PE-backed Solenergi and the ACME Group. The project is expected to commence commercial operations by December 2018.
Zhooben Bhiwandiwala, president Mahindra Partners, stated, “The Rewa Solar Project is one of the largest solar parks having the most bankable PPA terms and can become a model template for all upcoming solar projects.”
Speaking about the transaction, Rana Kapoor, MD&CEO, YES Bank said, “YES Bank has established itself as India’s pre-eminent Green Bank with pioneering initiatives in the Sustainable Finance domain.”
YES Bank has been a partner with Mahindra Group’s renewable energy venture since 2011, and has to date underwritten five solar projects for the group with a total capacity of 382 MW. Presently, Mahindra Group has 257 MW of operational solar capacity, and 250 MW under development.
The group, through Mahindra Susten, is one of the leading solar Engineering Procurement and Construction (EPC) companies, whaving completed over 1,625 MW of solar projects to date.
YES Bank at ISA founding ceremony
At the International Solar Alliance (ISA) founding ceremony, held on March 11, 2018, in New Delhi, YES BANK reconfirmed its commitment to chaneling financing worth $1 billion into solar by 2023, and $5 billion by 2030. The committment was signed during World Future Energy Summit (WFES) in Abu Dhabi, in January.
While attending the inaugural event, Kapoor said, “India has taken a leadership position in Climate financing, and ISA is a decisive step in augmenting this further. YES Bank is fully committed to supporting ISA objectives in sync with our leadership stature as India’s predominant ‘Green Bank.’
“I am confident that such sustained faith and trust of global institutions on YES Bank’s proven Renewable Energy credentials with a demonstrated track record have enabled us to pursue the achievement of our twin targets of financing 5 GW of renewable energy and mobilizing $5 billion for solar finance by 2030.”
The bank mentioned that the ISA compendium of solar application case studies, ‘Together making the Sun brighter: select global cases,’ prepared by YES Bank, is a compilation of 24 impactful and replicable global case studies of solar energy deployment from 20 ISA member countries.
The select cases capture implementation of unique cases focusing on the four primary programs of ISA on agriculture & rural electrification, affordable finance, solar mini-grids, and rooftops.