In December, Indian Energy signed a contract with ReGen Powertech Private Ltd for the construction of a 49.5 MW wind farm at Theni in the State of Tamil Nadu, India.

The three initial wind turbines are part of the first phase of development of the project which will see a further 8, 1.5 MW wind turbines within the next five months, bringing the total capacity to 16.5 MW.

The second construction phase is due to start in June 2010, bringing the total up to 49.5 MW, the owner and operator or wind farms in India says.

The Tamil Nadu Electricity Board (TNEB) has approved the Power Purchase Agreement (PPA) with Indian Energy, which will shortly enter into the 20 year PPA with TNEB for the sale of the power generated at Theni at a rate of Rs. 3.39 per kWh as governed by the current State Tariff Order.

The Theni wind farm project should also be eligible for the Generation Based Incentive scheme that has recently been announced by the Government of India and as a result receive a further INR 0.5 per kWh in revenue.

Furthermore, Indian Energy intends to establish the Theni wind farm as a Clean Development Mechanism (CDM) under the Kyoto Protocol.