Azure Power Wins 2 GW ISTS Solar Project With SECI

NEW DELHI, Dec. 13, 2019 /PVTIME/ -- Azure Power,
a leading solar power producer in India,
announced that it has received a letter of award (LOA) for a 2 GWs interstate
transmission (ISTS) solar power project with Solar Energy Corporation of India (SECI) to supply power for 25 years at a tariff
of INR 2.92 (~US 4.1 cents) per kWh. The solar
power project can be developed anywhere in India
and is expected to be commissioned in staggered annual phases of 500 MW each
with the first commissioning expected by 2022 and full commissioning by 2025.
The power purchase agreement (PPA) allows for the waiver of ISTS transmission
charges and improved protections from curtailment. As part of the LOA, the
company can elect in the next 5 days to double the capacity allocated as part
of a greenshoe option.

Azure Power's RAJASTHAN 5 200 MW project

The project also comes with a 500 MW cell and module
manufacturing capacity requirement. Azure Power has an agreement in principle
with a leading Indian solar panel manufacturer to take a majority ownership
stake of this manufacturing requirement and the total investment
requirement by the company is expected to be limited to 26% of equity
investment.

Speaking on this occasion, Ranjit
Gupta
, Chief Executive Officer, Azure Power said,
"This opportunity is attractive to us for many reasons. The tariff is 8%
higher than the last discovered tariff for an ISTS project with SECI which is
one of the best solar counterparties in India.
Now with a 5 GW portfolio, our scale and the predictability of our growth over
the next five years should allow us to capture significant
efficiencies." 

SOURCE: Azure Power

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