Refex Renewables Bags 80 MW Wind Project from SJVN

Project capacity: 80 MW. Power Purchase Agreement duration: 25 years.

Reader Takeaway: Predictable long-term revenue visibility secured via government-backed tender; execution timelines over 24 months are key.

What just happened

Refex Green Power Limited, a wholly-owned subsidiary of Refex Renewables & Infrastructure Limited, has received a letter of award from SJVN Limited to develop an 80 MW wind power project. The project will be situated in Kurnool, Andhra Pradesh, following a competitive bidding process.

Why this matters

This contract marks a strategic expansion for Refex Renewables in the green energy sector. By securing a 25-year Power Purchase Agreement (PPA) with a government-backed entity, the company creates a stable, long-term cash flow foundation once the asset becomes operational. The discovered tariff for this project is ₹3.88 per kWh.

What changes now

The company enters a project execution phase with a scheduled commencement of supply timeline of 24 months from the effective date of the PPA. Revenue generation will be linked to the actual energy supplied to the grid over the quarter-century lifespan of the agreement.

Risks to watch

As with all large-scale infrastructure projects, execution risk remains the primary variable. Investors should watch for updates on land acquisition, regulatory clearances, and infrastructure development. Any delays beyond the 24-month commissioning schedule could impact projected returns.

What to track next

The next milestone for shareholders is the formal signing of the Power Purchase Agreement and subsequent updates on the project's construction progress. Monitoring the efficiency of turbine performance post-commissioning will be essential for assessing long-term earnings potential.