What Is the Order?
Refex Green Power Limited, acting as a wholly-owned subsidiary of Refex Renewables & Infrastructure Limited, has received a formal Letter of Award for a greenfield 80 MW wind power project. The project is situated in Kurnool, Andhra Pradesh, a region known for its high wind power potential. The contract specifies that the company will develop the infrastructure and supply power under a long-term agreement.
Unlike lump-sum contracts, the value of this award is tied to energy generation, with a fixed tariff of ₹3.88 per kWh over two and a half decades. The project must be commissioned within 24 months of the agreement's effective date.
Client Profile
- SJVN Limited is a Mini Ratna Category-I Central Public Sector Enterprise under the Ministry of Power.
- It is a Joint Venture between the Government of India and the Government of Himachal Pradesh.
- The entity operates as a major Renewable Energy Implementing Agency (REIA) for the national grid.
- SJVN manages a diverse portfolio across hydro, solar, and wind power sectors in India and neighboring countries.
Business Impact
This award significantly enhances the order pipeline for Refex Renewables, which reported a TTM revenue of ₹71.93 crore. By securing an 80 MW project, the company is diversifying its portfolio beyond its historical solar focus into the wind energy segment. While the project ensures revenue visibility for 25 years, the company must manage execution risks to improve its financial health, given a recent annual net loss of ₹42.03 crore.
Additionally, with promoter pledging at 42.66%, the successful commissioning of this utility-scale project is vital for institutional investor confidence and future capital raising capabilities.
Industry Landscape
The Indian wind energy sector is witnessing a resurgence as the government targets 500 GW of non-fossil capacity by 2030. Andhra Pradesh has emerged as a critical hub for these developments, supported by favorable state policies and high wind density. The competitive bidding landscape for wind remains tight, with tariffs currently stabilizing between ₹3.20 and ₹4.00 per unit.
As the industry shifts toward hybrid models and Round-The-Clock power solutions, standalone wind projects like the Kurnool facility provide essential balancing power to the national grid, benefiting from improved turbine technologies and lower maintenance costs.
