14th Sustainable Energy Summit

New Delhi : 25th Nov., 2014

Sanjeev Gupta, Managing Director

Financing Indian Solar Aspirations

NEXGEN Financial Solutions Pvt. Ltd.

Renewable Energy – Dynamic Role in Power Sector

Success Strategies

Presented by :

Financing Large Solar Projects

GOI : 5yr Target & C S F

Tariff Assurance; ‘FiT v/s Bid’ ; Off-take Guarantees Catalyze REC market for Solar projects ; make RPOs

mandatory Tax Exemptions ; Other fiscal incentives Supplement (by GoI ) Revenue shortfalls

Revenue

Inadequate Sources - RE ( incl. Solar) included in Energy Sector (at Banks)

Designate RE as Priority Sector Status: Lowering Cost of Debt

Long Tenor; Higher D/E - Better Leverage (Lower Equity) Promote Innovative Financing : Takeout, Credit Enhancement &

Refinancing

Sources of Debt

Quasi Equity being accepted as Equity for DE Calculation ROE to be ensured; Catalyze Eq. Contribution from NBFCs etc. NFSM to be considered till grid - parity ‘10/80/10’ model to be allowed for RE projects, at the

earliest.

Requirementsof Equity

2

Aggregate: 1 Lakh MW; PSUs: 40K ; Ministries:40K ; Pvt. Sec: 20K

Aggregate Project Cost : `. 6.5 L Cr Debt : ` 4.5L to 5.2 L Cr ; ` Equity : 2 L Cr (approx) CSF : Revenue Assurance, Availability of D & E, NFSM

(VGF ) by GOI

RE- Dynamic Role in Power Sector

NEXGEN : Overview

Introduction

Power Generation : Govt, Public & Pvt. Sector (in Thermal ,Hydro ,Wind &Solar)

Power Transmission & Distribution : especially GETCO Roads & Highways : Private Sector – MSRDC & NHAI

Domain Area

Financial Advisor - Gujarat Solar Mission – 2009 Largest Solar Debt Syndicator – 23% GSM Share i.e around

10% National Share Interest Savings : achieved for all Guajrat Companies

since 2001 -aggregating to ` 20000 Cr. Catalyzing an Innovation & Incubation Fund (IIF) at PDPU,

Gandhinagar.

Focus : RE (esp. Solar)

Valuation Advisors to : ExxonMobil Corporation, USA Schneider Electric, S.A First Solar Inc., USA

Other Major Clients

3

A SEBI Registered Merchant Banker Provides integrated Debt & Equity Solutions especially to the

Energy Sector Transactions aggregating ` 50000 Cr (US$ 8 bn approx.)

including: - Gujarat State undertakings: ` 32,000 Cr. (approx.) ;Pvt. Sector : `10,000 - Other States : Maharashtra, Rajasthan, Andhra Pradesh,

Himachal, Madhya Pradesh & others

RE- Dynamic Role in Power Sector

Nestle, S.A. LinkedIn Corporation, USA Fabindia Overseas Pvt. Ltd.,

India& others….

THANK YOU !

Further Deliberations Invited :

Sanjeev Gupta, Managing Director

14th Sustainable Energy Summit

•E: sanjeev@nexgenfin.com

•W : www.nexgenfin.com

Renewable Energy – Dynamic Role in Power Sector