Project

Invictus 5MW Solar Plant

Country
Thailand
Sector
Renewable Energy
Proposed Investment
USD4,000,000 - Debt
USD1,900,000 - Equity

Technologies

Solar


Last Updated
Wed, 10/18/2017 - 17:22

Invictus Solar is an Independent Power Producer developing a 5MW Solar Power Plant to supply the energy demand of rice mills in the state of Andhra Pradesh, India. The Karimnagar Rice Mill Association will be the off-taker at the rate of USD 0.10/kWh. More than 400 para-boiled rice mills are clustered in the District and are members of the Karimnagar rice mill association. There is currently a power shortage of almost 40% in Andhra Pradesh. Power shortages cut rice mill production optimization by more than 1/3. Total project cost for the construction of the 5MW solar plant is expected to be $7.5 million. Developers equity contribution of 40% CAPEX or USD 3M to be acquired from the Invictus Board of Directors and EPC Partner, Parsons Brinckerhoff. Remaining long-term debt requirement equals 60% CAPEX. Invictus is seeking to secure USD 4.5M long-term debt financing from lender. Revenue from the solar energy sold through Power Purchase Agreement (the PPA), plus Renewable Energy Credit (REC) revenues and Carbon Credit revenues will repay investors and long-term debt. This will be the first solar power plant in the Karimnagar District. This District has an energy capacity requirement of 100MW due to the 400 rice mills in the region. Invictus plans to reproduce the same business model ten times in this district, plus another eleven available districts in Andhra Pradesh for solar power development, supporting the Rice Mill Industry by providing them with clean solar power.
What problem are you trying to solve? Who has this problem?
The total power demand of the State of Andhra Pradesh reaches 100 MW. There is a power deficit of almost 40 MW causing electricity outages averaging 7 to 10 hours every day. This causes business shut downs and daily economic loss of USD 8M. For the rice mill members of the Karimnagar Rice Mill Association, power outage has cut rice mill production by more than 35%. While the economic impacts are significant, it also affects food supply as rice is the staple food for almost 65% of the population in India. There are currently only 8.75MW electric power plants commissioned in the state of Andhra Pradesh, that represents only 20% of the power deficit in the area. Invictus is looking at replicating the solar power projects ten times in the Karimnagar district and in other 11 districts in Andhra Pradesh.
Value Proposition
The Invictus 5MW Solar project will be built in the Amangal, Mahaboobnagar district of Andhra Pradesh, India. Irradiation survey results reveal capacity to generate 9760 kWh/m2 annually for 5MW at a performance ratio of 88.9%. The Project has has acquired all zoning and land use permissions and approvals for solar development. Invictus Solar enters into an EPC and O+M Consortium Contract with Parsons Brinckreoff (PB), with two locations in India, whose development and operating team has significant experience managing solar projects over the past 10 years. Parsons Brinckerhoff contract contains performance guarantees for production capacity, quality and efficiency.Parsons Brinckerhoff- EPC consortium contract provides 8 years of equity participation in the project. The Karimnagar Rice Mill Association is the Off-Take Partner for the project, with over 400 para-boiled rice mill owners clustered in the district. Letter of Intent to purchase power from the solar project was executed March 2013 for 25-years at $0.10 USD, with 5% annual escalation. PPA revenue to the project will be $ 961,573 the first year. This electricity rate reflects a 20% savings for existing energy costs for the off-taker.
  • Reduce 4.5 million tons of CO2 emissions
  • Contribute in making power supply reliable to rice mills
  • Contribute in the growth of the rice mill industry and creating employment opportunities for many locals
Mohana Vamshi, Sustainability Coordinator
Sree Gunge, Founder and President
Advisors
Investors


Maturity Level
  • Prototyping and Validation
  • Commercial Operations
  • Growth and Expansion