Gujarat
Power Project
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Gujarat Power Project

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India is the sixth largest consumer of electricity in the world accounting for 3.7% of the global energy consumption. Demand for electricity in India has been growing steadily driven by factors such as rapid economic growth and rural electrification program. However, the supply of electricity has constantly fallen behind, leading to acute power demand deficit in India.

The main challenges in meeting the demand for electricity have been the government’s inability to meet capacity addition targets, shortages of fuel such as coal, power losses in transmission & distribution and the ageing/improperly maintained infrastructure. In order to address the power shortages in the country the government is focusing on renewable sources of energy and has set an ambitious target of increasing the current renewable energy consumption mix of just 1.6% to 4-5% by 2012. Among the renewable energy sources, wind energy shows the highest potential for capacity additions.

India has long played an important role in the world’s wind energy market and now ranks 5th in the world in terms of installed wind power capacity. The main drivers for wind energy in India have been the strong untapped potential which is estimated to be around 48.5 GW, cost competitiveness with cost per KWh of wind power now comparable to those from conventional energy sources such as coal, favourable government policies and incentives both at the centre and the state level and the CDM benefits available as a part of the Koyoto protocol. Among the states in India, Gujarat shows one of the highest potential in terms of wind energy. The Government of Gujarat (GoG) has recognised this and has deployed various favourable policies to boost the investment in this sector. In the recently held “Vibrant Gujarat” investor conference, the wind energy segment generated substantial interest with top energy players entering into a Memorandum of Understanding (MoU) with the government for deployment of mega wind energy projects.

Metatron Danke Green Energy Pvt Ltd (MDGEPL) signed a MoU with the GoG for a 100 MW wind farm project. It has identified two high potential sites near the border of Gujarat and Rajasthan which posses the ideal characteristics for wind farm development. The proposed high potential project would deploy 67 wind turbine generators and generate around 200 million units of electricity every year. The electricity would be sold to both state owned transmission players and to energy traders in order to get attractive prices. The total capital cost of the project is USD 115 million and a 70:30 debt equity structure is proposed. The project would generate attractive returns to investors with an estimated equity IRR of 24% and equity payback period of 6 years.
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Further the project is backed by a highly successful, influential and visionary entrepreneur, the CEO of MDGEPL, who has an impressive past track record in launching successful ventures. The entrepreneur also has contacts with key personnel within the central and state government agencies, which are crucial for the successful execution of the project. MDGEPL has already obtained an expression of interest from Satluj Jal Vidyut Nigam (SJVN), a state owned power company which has a track record of setting up large hydro projects in India and abroad, for a minority stake in the project. SJVN would contribute significantly to the project from its experience in setting up and managing large power projects.
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