- Country: India
- Industry: Energy, Natural Resources, Mining
- Stage: Initial growth (first revenues)
- Investment size: $100,000,000 / min. $3,600,000
- Type of investment: Debt, Equity
The Company is set up and running. We are seeking Funding or investment to grow our 100MW Solar Farm. We own the land and have a signed PPA for 100MW.
My business partner and I have a 100MW allocation from the Federal Govt. of India in the name of an Indian SPV, SSP (abbreviation) PTE. This allocation is registered under the official Rajasthan Energy Policy of 2011.
So far we have invested significant time and personal funding which has taken close to 2 years of work to obtain the necessary registrations, licenses and approvals, a process that provides a significant barrier to entry to the market for outside companies looking to capitalize on the high IRR’s currently available in the Indian Solar Market.
The benefit of our investment to date is that SSP PTE is now a fully registered and approved developer with a total of 100MW of invited allocation and approx. 8 years are left to build it. All industry hurdles have been worked through and overcome, culminating in the issuance of our first Federal Govt. PPA (complete with escalation) for our first MW, which was issued on the 6th January this year.
The 1MW together with the PPA is now shovel-ready with land bought and registered within an existing EPC park complete with infrastructure and low ongoing costs. The PPA has been issued under the Renewable Energy Certificate scheme. At present we are tied into an EPC for this first MW in lieu of work they have done in assisting the process thus far etc.
With regards to our additional 99MW allocation, at this stage we have successfully applied and converted an additional 4MW to license and this can be quickly converted to PPA in approximately eight weeks pending proof of funds to build. We are not tied into any supplier or EPC for this or the balance of the project.
Since we received the 1MW PPA we have assessed several potential funding partners, some of which made good sense for just this initial 1MW, however, we have kept our heads focused on attracting a longer-term partner who was capable of appreciating the bigger 100MW picture and offered a credible solution to the various different elements of the project including finance, supply etc.
Our current aim is to quickly assess mutual suitability and provide enough relevant and substantiated information on which you could make both an assessment of viability and attract a formal proposal.
Opportunity for the investor
We would be seeking a finance-only option for the first 1MW of $1.6m, allowing us to complete with the current EPC. This can take the form of either structured project finance or, tied to the bigger picture, a partnership and revenue share. In addition we would be seeking a proposal for the next 4MW in which we would be willing to offer both the right to finance and supply. From here the framework and relationship would be set for a healthy discussion of the balance of 95MW.
The 1MW on the lowest and most conservative projections gives an IRR of over 12%.
In terms of transparency of timescales, it is our intent to close on the 1MW and 4MW ASAP and the balance of 95MW before the end of this year.
Should this be of interest, please email me for a copy of our NDA.
Upon receipt I can send the following:
1) Full copy of the PPA
2) Financial projections & Generational Data from existing parks close to where ours is to be built
2) Copy of the land registry for where our first MW is to be built
3) Certificate of Incorporation for SSP
4) Confirmation Letter from our EPC with regards 1st MW
6) GPS coordinates for the site
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