Nippon Export and Investment Insurance (NEXI) announced Sept 12, 2017, that it will provide a loan insurance for a mega (large-scale) solar project in Andhra Pradesh, India.
This will be the first time that NEXI has provided an insurance policy for a solar project in India. SBG Cleantech Ltd will raise capital through joint financing, and the insurance policy will be applied only to the loan given by Mizuho Bank Ltd.
In regard to covered risks, the political risk and commercial risk are 100% and 90%, respectively. Japan Bank for International Cooperation (JBIC) has also decided to invest in the project.
In the project, SBG Cleantech, which is invested in by the Softbank group, will build, own and operate a solar power plant with a solar panel capacity of 455MW (grid capacity: 350MW) on a developed land in Kurnool, Andhra Pradesh (the southern part of India).
The solar panel and PV inverter employed for the project are products of Trina Solar Ltd and Toshiba Mitsubishi-Electric Industrial Systems Corp (TMEIC), respectively. Electricity generated at the solar power plant will be sold to India's National Thermal Power Corporation (NTPC) Ltd for 25 years.
Aiming to secure power supply capacity and diversity supply sources, the Indian government is promoting "Jawaharlal Nehru National Solar Mission," which is a policy of developing 100GW of solar power plants by 2022. The power plant to be built in the latest project will be the first solar power plant that has started operations under the policy.