Turbines start turning at Theni

The first three 1.5MW wind turbines at Indian Energy's Theni project have gone online and are now generating electricity to the grid.

Indian Energy signed a contract with ReGen Powertech for the construction of a 49.5MW wind farm at Theni in the State of Tamil Nadu on 8 December 2009.

These three initial turbines are part of the first phase of development of the project which will see a further eight 1.5MW turbines constructed within the next five months to give a total generating capacity of 16.5MW.

The second construction phase is due to start in June 2010. Upon completion this will take the total generating capacity at Theni to 49.5MW by December 2010

Indian Energy will shortly enter into a 20-year power purchase agreement with the Tamil Nadu Electricity Board for the sale of the power generated at Theni at a rate of INRR3.39/kWh, as governed by the current State Tariff Order. The Theni Project should be eligible for the Generation Based Incentive scheme that has recently been announced by the Government of India and, as a result, receive a further INR0.5/kWh.

The Theni project is also expected to qualify for the Clean Development Mechanism under the Kyoto Protocol and, as a result, both phases one and two are expected to generate approximately 120,000 Certified Emission Reductions per annum.

“The fact that these three turbines have already begun to contribute to earnings demonstrates how quickly we can deploy capital to generate returns and develop what we believe will be a long-term and sustained income stream,” said Rupert Strachwitz, chief executive of Indian Energy.

Indian Energy currently owns and operates a 24.8MW wind farm at Gadag Plains, near Hubli in Karnataka, and intends to own a portfolio of wind farms in India with 300MW of annual generating capacity by Q1 2013.