Indian Energy has entered into an agreement with ReGen Powertech Private Limited ("ReGen") for the construction of a wind farm at Theni in the State of Tamil Nadu with a generating capacity of up to 49.5 MW ("Theni Project").
The Theni Project is being constructed and commissioned in two phases. Phase I consists of 11 turbines of 1.5 MW capacity each and with a total generating capacity of 16.5 MW.
Phase II, for which Indian Energy has signed an expansion option with ReGen, will consist of up to 22 turbines of 1.5 MW each and a total capacity of up to 33 MW, with construction scheduled to commence in Q4 2010 and plans to be fully commissioned by Q1 2011.
ReGen is a Chennai-based company which manufactures turbines using technology from Vensys Energy AG, Germany. Vensys technology is well established and the worldwide installed capacity of wind turbines of the same design is in excess of 1,650 MW.
Indian Energy has entered into a long term 20 year Power Purchase Agreement ("PPA") with the Tamil Nadu Electricity Board for the sale of power at a rate of Rs. 3.39 per kWh as governed by the current State Tariff Order for the first 4.5 MW and the PPA for the next 12 MW is expected to signed shortly. In addition, Indian Energy intends to establish the project as a Clean Development Mechanism under the Kyoto Protocol, which is expected to generate approximately 120,000 Certified Emission Reductions ("CERs") per annum.
The first 4.5 MW of the Theni Project has been approved under the Generation Based Incentive Scheme that was announced in December 2009 and will receive a further INR 0.5 per kWh in revenue.