Greenko has secured a Rs 55 billion loan from Power Finance Corporation Limited (PFC) to build an off-river energy storage project in Andhra Pradesh.
The loan tenure is for 20 years loan and has been priced at 11 per cent per annum interest. The repayment of the loan will start only after the project has been commissioned. After commissioning, it will get a one-year moratorium during which no payment to the lender will be required. The storage project, fully owned by Greenko, is being built at a cost of Rs 76 billion, of which the debt component is being funded by PFC. The remaining funds for construction will be put in by Greenko as equity. The storage facility has a capacity of 1,200 MW. The project entails the construction of two large water reservoirs at opposite ends of a gradient on a land area. During the day, solar energy will be used to pump water from the bottom reservoir to the top reservoir. During night, the water will be pumped down to generate hydro energy.