Azure Power has received the letter of award (LOA) for a 2 GW interstate transmission (ISTS) solar power project from Solar Energy Corporation of India (SECI).
Azure will supply power for 25 years at a tariff of INR 2.92 (~US 3.9 cents) per kWh. The project also comes with a 500 MW cell and module manufacturing capacity requirement and Azure Power intends to partner with a domestic manufacturer for this requirement.
The combined capacity for the project is 4 GWs which can be developed anywhere in India and is expected to be commissioned in staggered annual phases of 1 GW 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.
Ranjit Gupta, chief executive officer of Azure Power, said: “With this award, we will have a large pipeline of over 4 GW for an extended period of time which will help us drive efficiencies in our project execution and operations.”