Summary: International developer, Phelan Energy Group secures Financial Close of 50 MW project in Bhadla with Power Finance Corporation with a project cost of USD $40 Million.
Phelan Energy Group’s latest project in Bhadla is currently under construction with EPC Company TATA Solar with an expected COD of October 2018. Phelan Energy Group surpassed all difficulties in achieving Financial Close even after the imposition of safeguard duty (effective from July 30, 2018), which states that all solar imports would be taxed by 25 percent and would now have to pay the safeguard duty. This lead to solar developers opposing the safeguard duty, claiming that it would put the brakes on India’s renewable energy program, thus leading to uncertainty in the coming years for new solar projects.
In May 2017, Phelan Energy Group participated in the reverse auction of Bhadla Phase-IV Solar Park in Rajasthan, organized by the Solar Energy Corporation of India (SECI). Phelan Energy Group bid for 50MW at INR 2.62/kWh which was, at the time, the lowest bid ever in India, breaking the previous record of INR 3.15/kWh bid by France’s Solairedirect SA in an auction the previous month.
Phelan Energy Group has executed a long-term PPA with SECI valid for 25 years. Prime Minister Narendra Modi called the Phelan winning bid a “historic moment”, bringing the solar electricity price in India below that of coal power for the first time. “The Phelan vision is to continue to achieve the lowest cost of solar energy in the world. We are extremely focused on the cutting-edge Technology, efficient Design & Project Management, together with a proprietary Cost to Power financial model, whilst at the same time delivering high quality long-term plant performance.” Chairman, Paschal Phelan added.
While solar power tariffs rose to Rs2.98 per kWh at an auction conducted by the Gujarat government in this year, last auctions conducted by state-run NTPC threw up winning bids of Rs2.50 per unit. “Our organization is fully committed to support the vision of PM Modi and his team of ministers who are promoters of a larger share of solar energy capacity within the Indian energy mix. Phelan Energy Group will be part of this ambitious plan and sees India as a steady growth market for the years to come”, added Mr. Paschal Phelan.
This comes from the backdrop of Prime Minister Narendra Modi outlining 10 action points at the International Solar Alliance (ISA) founding conference here. These include increasing solar power in the overall energy mix in India, ensuring availability of more efficient and affordable solar power for all, concessional financing for solar projects and creating a network of centres of excellence. “We see remarkable prospects in the Indian solar market”, added Mr. Paschal Phelan.
Phelan Energy Group is a world leader in low-cost energy development with an exclusive focus on Solar PV. PEG commenced operations in South Africa 10 years ago, and is led by a dynamic international development team of 90 executives with 12 different nationalities. It has a total of one gigawatt of installed capacity and development pipeline, with a large and growing international footprint. When completed, its key solar installation in South Africa, at 175 MW, will be the largest solar farm in the southern hemisphere.
Apart from its new International HQ in Dublin, PEG has offices in Cape Town, New Delhi, Buenos Aires, Amman, Dhaka and Sydney. Its Cape Town office will continue to develop opportunities in Africa. New Delhi is the location of its International Center of Excellence for Technology development and Project construction.
Paschal Phelan is the founder and the Executive Chairman of the Phelan Energy Group Ltd. Its South Africa subsidiary, Solar Capital (Pty) Ltd, is the largest privately-owned photovoltaic developer in Africa with a core vision of stewardship and responsibility for our environment.For more information, please refer to the contact information below.
You can read more about Paschal Phelan and Phelan Energy on our website at www.phelanenergygroup.com