The company will be responsible for the supply of electricity for a period of 25 years, at a tariff of INR2.92 ($0.39)/kWh
Azure Power, an Indian independent solar power producer, has secured a letter of award (LoA) for a 2GW interstate-transmission (ISTS) solar power project from the Solar Energy Corporation of India (SECI).
The LoA for the project is an addition to the 2GW of solar projects secured by Azure Power from SECI in December last year.
As per the terms of the greenshoe LoA, the company will be responsible for the supply of electricity for a period of 25 years, at a tariff of Rs2.92 ($0.39)/kWh.
The project also includes a 500MW of solar cell and module manufacturing capacity requirement, for which the company intends to collaborate with a domestic manufacturer.
Azure Power expects to build the solar projects in different phases of 1GW each
Azure Power CEO Ranjit Gupta 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.
“This project is also a significant step towards India’s commitment to battle climate change and to reduce carbon emissions signed under the Paris Climate Change Agreement.
“Partnering with domestic manufacturers of solar PV modules in India as part of the project will help propel India’s solar cell and module manufacturing sector into becoming a global leader.”
The company said that the combined 4GW solar project will be developed anywhere across India and it expects to build them in different phases of 1GW each.
The first phase is expected to commence operations in 2022, with the commissioning of 4GW capacity by 2025.
In April last year, Azure Power commissioned a 150MW solar plant in Bhadla solar park in Rajasthan. The solar plant forms the first phase of the 200MW allocated to the company by SECI.