STRICTLY CONFIDENTIAL
WELSPUN RENEWABLES ENERGY PVT. LTD.
(WREPL)
Welspun Renewables Energy Pvt. Ltd.
Experience of Investing in and Operating PV Power Plants in India
– Feb 2015
1
A
CONTENTS
STRICTLY CONFIDENTIAL PAGE 1
1
Experience of Investing in and Operating PV Power Plants in India
2 Select Issues & Recommendations
STRICTLY CONFIDENTIAL PAGE 2
Experience of Investing in and Operating PV Power Plants in India
1
PAGE 3STRICTLY CONFIDENTIAL
Welspun Renewables Energy Pvt. Ltd.
WELSPUN HAS AN EXCEPTIONAL HISTORICAL PERFORMANCE /
TRACK RECORD IN CLEAN ENERGY SPACE
WELSPUN RENEWABLES CURRENTLY HAS THE LARGEST OPERATIONAL SOLAR POWER
CAPACITY IN INDIA
PAGE 4STRICTLY CONFIDENTIAL
Welspun Renewables Energy Pvt. Ltd.
OUR RENEWABLE PORTFOLIO HAS PAN-INDIA
SPREAD
PORTFOLIO SPREAD ACROSS MULTIPLE STATES : Diversified Risk
Source: Company
PAGE 5STRICTLY CONFIDENTIAL
Welspun Renewables Energy Pvt. Ltd.
ALL OPERATIONAL PROJECTS PERFORMING BETTER
THAN PROJECTIONS
SUSTAINED OPERATIONAL EXCELLENCE – ACTUAL PLF (CUF) > DESIGN PLF (CUF)SUSTAINED OPERATIONAL EXCELLENCE – ACTUAL PLF (CUF) > DESIGN PLF (CUF)
Performance better than Projections (Projects with full year operations)
Source: Company
Source: Company
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Amongst the best performing projects in Gujarat*
WREPL Assets
PAGE 6STRICTLY CONFIDENTIAL
Welspun Renewables Energy Pvt. Ltd.
WELL RECOGNIZED FOR INNOVATION, EXCELLENCE
AND LEADERSHIP
Solar Man of the Year
WREPL Vice Chairman Vineet Mittal has been conferred the 'Solar Man of The Year 2014' award.
Jury chairman: Deepak Gupta (Former Secretary, MNRE)
Golden Peacock for Innovative Service
Welspun was awarded Golden Peacock Award (innovative service) for Modified Module Mounting
Structure.
Outstanding Company in Power Generation (Renewable Energy)
Welspun was awarded ‘Outstanding Company in Power Generation (Renewable Energy)’ at 4th
EPC World Awards 2013. The award recognizes the company’s outstanding contribution towards
country’s energy security through its renewable projects across the country.
GLOBAL EXCELLENCE AWARD in RENEWABLE ENERGY 2013
The Energy and Environment Foundation, with the support of Ministry of New and Renewable
Energy (MNRE) and UNESCO awarded Mr. Mittal for his outstanding contribution and
demonstrating excellence in the Renewable Energy sector at the 4th World Renewable Energy
Technology Congress (WRETC)
July
2014
May
2014
Dec
2013
Oct
2013
Global Solar EPC Award
Welspun was awarded Global Solar EPC Award (innovative service) for excellence in solar project
development.
May
2014
IPPAI Power Award for Innovation
Welspun was given 2 awards for innovation by Independent Power Producer Association of India.
Innovative practices were improving output and operational efficiency.
Aug
2014
PAGE 7STRICTLY CONFIDENTIAL
Welspun Renewables Energy Pvt. Ltd.EXCELLENT CREDIT RATING
‘A’ CATEGORY CREDIT RATING AS PER CARE RATINGS
Source: Company; CARE Ratings; * SO rating
First company in the clean energy space in India to be ISO 9001:2008
certified
ISO 9001:2008
CertificateSTABLE CREDIT HEALTH OF COMPANIES/ PROJECTS
Company/SPV/Project Latest Credit Rating
Welspun Energy Private Ltd. A+
Welspun Renewables Energy Private Ltd.* A+
Welspun Solar AP (Rajasthan 55 MW)* A+
NorthWest Energy (Rajasthan 5 MW) A-
Unity Power (Gujarat 5 MW) A-
Welspun Urja Gujarat (Gujarat 15 MW) A-
Indicates financial and operational health as well as reduced payment risk
PAGE 8STRICTLY CONFIDENTIAL
Welspun Renewables Energy Pvt. Ltd.
� Central bank of india
� Union Bank Of India
� IIFCL
� Vijaya Bank
� L&T Infrastructure Finance Limited
� IDFC Limited
� EXIM Bank
� IndusInd Bank
� Yes Bank Limited
� State Bank of Bikaner and Jaipur
� State Bank of Patiala
� India Overseas Bank
� State Bank of Hyderabad
� Allahabad Bank
EXISTING RELATIONSHIP WITH LEADING BANKS AND
FINANCIAL INSTITUTIONS
ALSO…REPUTED INVESTORS HAVE
REPOSED FAITH
Raghuveer Kurada
(Business leader for India and South East Asia at GE Energy
Financial Services)
WREPL’s history of developing benchmark projects ahead of schedule and with high generation power output
helps us expand globally across the energy spectrum and meet the world's
energy needs
PAGE 9STRICTLY CONFIDENTIAL
Welspun Renewables Energy Pvt. Ltd.
� Focus on value creation and corporate citizenship has helped the company build an
enviable corporate reputation founded on ethical and transparent approaches� Fairness to shareholders, customers, employees, fund providers, suppliers, regulators and the society as
a whole
� Business strategy developed using a ‘triple bottom-line’ approach
� Sustain “Profits- Planet – People” nexus and bring about low carbon transition in the energy sector
� Significant investments in CSR initiatives around Education, Empowerment and Health
STRONG CORPORATE GOVERNANCE
PAGE 10STRICTLY CONFIDENTIAL
Welspun Renewables Energy Pvt. Ltd.ROBUST MANAGEMENT MODEL
Strong process and metrics based management based on EFQM (European Foundation for Quality management) framework help us to deliver predictable performance and mitigate risk
PAGE 11STRICTLY CONFIDENTIAL
Welspun Renewables Energy Pvt. Ltd.
Commissioning schedules of recent projects
Source: Company
STRONG PROJECT MANAGEMENT CAPABILITIES
Company has executed all projects with in the estimated costs - A few select cases
WREPL has never faced any
time/cost over run for any project
till date
PAGE 12STRICTLY CONFIDENTIAL
Welspun Renewables Energy Pvt. Ltd.
Welspun commissioned the largest solar project in Asia
Source: Company
EXECUTED ONE OF THE LARGEST SOLAR PROJECT
IN THE WORLD
� Utility-scale151 MW (DC) solar project at Neemuch in Madhya Pradesh spread across 800 acres of barren terrain
� Project awarded by Madhya Pradesh Power Management Company (MPPMC), the highest capacity to be awarded to any Indian entity in solar space
� Financial closure of the project was one of the largest single deal in energy and infrastructure space
� Project Commissioned approximately 8 months ahead of schedule
� Currently feeding enough green energy into the state grid to power 624,000 households and mitigate 216,372 tonnes of carbon emissions annually
PAGE 13STRICTLY CONFIDENTIAL
Welspun Renewables Energy Pvt. Ltd.
EPC is strategically done by Sponsor on arms length basis
EPC – CREATING VALUE ACROSS THE VALUE CHAIN
Engineering
Procurement
Construction
� Engineering Centre of Excellence - develops and focuses on value based engineering solutions
� Frugal engineering – re-engineering of complex processes in the most economical manner� Resulting in capital cost savings of upto USD 0.125 Mn per MW� Resulting in increase in output and reduction in losses
� Equipment from Europe, US, Japan, China� Strong partnerships with leading manufacturers� ICB (International Competitive Bids) to discover best price available� Group’s strong brand equity and global presence� Economies of scale
� Construction : WREPL has showcased its construction competence with installing 5 MW in 56 days
� In the land banks secured for projects in the pipeline – Welpun has completed laying foundations/boundary wall to reduce project turnaround time
� Standardised best in class processes and robust project management framework leads to predictable time, quality and cost control
Team with total experience of 1300 years
PAGE 14STRICTLY CONFIDENTIAL
Welspun Renewables Energy Pvt. Ltd.
High quality Management
teamSustainability
orientation
Governance & People focus –Process driven
Cost competitiveness
Strong Project Management
In-house O&M
Project Execution track
record
On-time payments
Strong financial backing
Wide exposure
Ready Land Bank
Access to strong Technical
expertise/ R&D through EPC
arm
KEY FACTORS THAT HELPS US SUCCEED
WREPL
Stakeholder coordination
— Strong and sustained relationship with all the
stakeholders including Government agencies , suppliers, contractors , local villagers contributes to
the success of project
Standardization
— Based on our project experience in other locations,
the critical and long lead items had been standardized which results in parallel designing of
other components
Project management
— Resource planning and deployment along with the
productivity were analyzed on a daily basis. With the right supervision and incentive structure, higher
productivity is achieved
Integrated working
— Faster decision making is one of the key enablers of
efficiency and productivity. Two levels of decision making and engagement is created. Daily reviews
are conducted at site and corporate level. Sufficient authority is delegated at site level for faster decision
making
PAGE 15STRICTLY CONFIDENTIAL
Welspun Renewables Energy Pvt. Ltd.
Environment & Sustainability Plan
� Reducing Facility
Environmental Impact
� Plantation & Water harvesting
� Energy conservation
and other awareness Initiatives
Healthcare
� Assistance to
Community Health Centres
� Medicals camps (Asthma, Polio,
family planning etc.)
� Free Check-up and medicine
� Health & Hygiene awareness
Campaign
� Operation winter
� Formation &
Strengthening of Village Health &
Sanitation Committee
Education
� Train the trainer/
experiential learning programs
� Need based financial assistance; school
meal schemes
� Infrastructure support for schools
� Job fairs/ career counselling
� Computer
Awareness Programs
� Vocational Training programs
� Adult Education
initiatives
Women Empowerment
� Formation of Self-
Help Groups
� Technical Training
for SHGs
� Marketing Plans
� Welspun India
appointed trained women as contract
labour – basic stitching
� Orders from
Welspun India –stitching and
handwork
Model Villages
� Formation of village
development committee & SHGs
� Infrastructure support (building
toilets, water taps)
� Literacy and healthcare initiatives
HOW WE GIVE BACK TO THE LOCAL COMMUNITY
PAGE 16STRICTLY CONFIDENTIAL
Welspun Renewables Energy Pvt. Ltd.
WELSPUN IS WELL POSITIONED TO CAPTURE THE ~160 GW RENEWABLE PROJECTS
TARGETED BY GOVT. OF INDIA
STRICTLY CONFIDENTIAL PAGE 17
Select Issues & Recommendations
2
PAGE 18STRICTLY CONFIDENTIAL
Welspun Renewables Energy Pvt. Ltd.
Issue Recommendation
Cross-subsidy issue for Rooftop
Grid connected utility feed to metro areas and distributed/ rooftop solar for tier-2/tier-3 towns and rural areas
Payment security Given the financial health of the DISCOMs, default in payment to developers is seen as a critical risk by financial institutions. It is necessary to take constructive steps for allaying the fears of the bankers and ensure investments in the sector, through payment security mechanisms – for example in partnership with organizations such as Multilateral Investment Guarantee Agency (MIGA).
Clearances The clearance process for solar and wind power projects should be made much more simplified - mainly for the reason that these projects are sustainable and do not emit any pollutants - under the State Pollution Control Board, Consent to Establish (CTE)/ Consent to Operate (CTO) should be done away.
Land availability & right of way
Post assessing the solar potential of each state, government land banks should be created and allocated to the projects which are coming up in the state. Additionally, as solar and wind are non polluting industries akin to farms - hence these projects should receive Non – Agricultural Land Conversion exemption. This will avoid security perfection issue at Banks
Grid connectivity The typical project development cycle of solar & wind is six to eight months. However while the projects are ready to be commissioned, the corresponding power evacuation architecture lags behind exposing the project developers and banks to high financial risk. Developers in most states are facing this issue wherein they lose revenues because the evacuation infrastructure has not been timely developed. Therefore based on the solar potential in the state the respective state government should develop evacuation architecture. For developing the Green Corridor, a priority lending status should be given. This will ensure that as soon as the green energy projects are commissioned the evacuation infrastructure is already in place and they are able to transmit the energy generated to the state grid in a timely manner
BOS deficit BOS procurement is increasingly becoming a challenge. Focus on manufacturing and vendordevelopment for BOS rather than focusing on module manufacturing alone is essential to meet renewable targets
SELECT ISSUES & RECOMMENDATIONS
STRICTLY CONFIDENTIAL PAGE 19
THANK YOU
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