Orient Green Power Commissions 7 MW Solar Project in Tamil Nadu, Expanding Beyond Wind Energy

Orient Green Power Company Limited (OGPL) has successfully commissioned its first solar energy project, marking a significant milestone in the company's renewable energy portfolio expansion. The company's subsidiary, Delta Renewable Energy Private Limited (DELTA), has developed and installed a 7 MW AC Solar Power Project in Krishnasamudram Village, Tiruttani Taluk, Tiruvallur District, Tamil Nadu.

Project Details

Capacity: 7 MW AC
Location: Krishnasamudram Village, Tiruttani Taluk, Tiruvallur District, Tamil Nadu
Operating Model: Group Captive Model

Strategic Significance

This solar project represents OGPL's strategic entry into the solar energy sector, complementing its established wind power portfolio. The diversification into solar energy is a move that may enhance the company's position in the renewable energy market and could allow it to serve existing clients under the Group Captive Model.

Operational Model

The project operates under the Group Captive Model, with the generated power being supplied to DELTA's captive shareholders. This model typically allows for more predictable revenue streams and can be attractive to industrial consumers looking to reduce their carbon footprint.

Financial Implications

While specific financial details of the project were not disclosed, a look at OGPL's recent balance sheet data reveals some trends:

Financial Metric	Current Year	1 Year Ago	Change
Total Assets	1,249.90	1,047.70	19.30%
Fixed Assets	0.90	0.00	N/A
Investments	667.80	669.20	-0.21%
Current Assets	176.40	32.50	442.77%

All figures in ₹ crore

The increase in current assets and the appearance of fixed assets on the balance sheet could potentially be related to the company's expansion into solar energy. However, it's important to note that these figures represent the entire company's financials and not just the solar project.

Market Implications

This move into solar energy could potentially:

Diversify OGPL's revenue streams
Reduce the company's dependence on wind power
Position OGPL as a more comprehensive renewable energy player

As the renewable energy sector continues to grow in India, OGPL's expansion into solar could open up new growth opportunities for the company.

Investors and industry observers may be watching closely to see how this new solar project performs and whether it signals a broader shift in OGPL's strategy towards a more diversified renewable energy portfolio.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+0.52%	+2.82%	-3.32%	-18.70%	-27.82%	+301.72%

Orient Green Power Company Limited (OGPL) announced a significant development for its material subsidiary, Beta Wind Farm Private Limited. Infomerics Valuation and Rating Limited has upgraded Beta Wind Farm's credit rating to IVR BBB with a stable outlook, up from the previous IVR BBB- rating. This upgrade applies to the company's long-term bank facility, which has been reduced from Rs. 598.53 crore to Rs. 518.95 crore.

Credit Rating Upgrade Details

Aspect	Details
Company	Beta Wind Farm Private Limited
New Rating	IVR BBB with stable outlook
Previous Rating	IVR BBB-
Facility	Long-term bank facility
Amount	Rs. 518.95 crore

The upgraded IVR BBB rating indicates a moderate degree of safety regarding timely servicing of financial obligations. This rating suggests that Beta Wind Farm carries moderate credit risk, which is an improvement from its previous rating.

Reasons for Upgrade

The credit rating upgrade is based on several factors:

Improved PLF (Plant Load Factor) performance
Better liquidity position
Strengthened financial risk profile

These improvements are expected to result in a reduction of interest rates by 25 basis points and enhance financing flexibility for Orient Green Power Company Limited.

Implications for Orient Green Power

This credit rating upgrade for Beta Wind Farm, a material subsidiary, is likely to have positive implications for Orient Green Power Company Limited. It may enhance the group's overall creditworthiness and potentially improve its ability to access financing on more favorable terms.

Financial Position of Orient Green Power

To provide context on the parent company's financial standing, here's a snapshot of Orient Green Power's consolidated balance sheet highlights:

Metric	Amount (in Rs. crore)	YoY Change
Total Assets	1,661.90	+2.74%
Current Assets	307.00	+59.81%
Fixed Assets	1,331.40	-4.42%
Total Equity	1,071.90	+37.19%
Current Liabilities	114.10	-3.96%
Non-Current Liabilities	475.90	-33.67%

The company has shown improvement in its financial position, with a significant increase in total equity and current assets, while reducing its liabilities. This aligns with the positive development in its subsidiary's credit rating.

Conclusion

The credit rating upgrade for Beta Wind Farm Private Limited reflects positively on Orient Green Power's overall operations and financial health. As the renewable energy sector continues to grow, such improvements in credit ratings could potentially lead to better financing options and increased investor confidence in the company's projects and operations.