Azure Power Inks 2333MW PPA with SECI Under 4GW Mfg-linked Projects

Azure Power has signed its largest ever Power Purchase Agreements (PPAs) with the Solar Energy Corporation of India (SECI) for a capacity of 2,333 MW of interstate transmission system (ISTS)-connected solar power projects under the 4 GW manufacturing linked projects, announced the company in a recent official statement.

The news was expected since last week, Adani Green Energy Ltd (AGEL), the renewable energy arm of the diversified Adani Group, announced its signing of a 4,667 MW green PPA with SECI under the 8 GW manufacturing-linked solar tender that the firm had won in June 2020 along with Azure winning its 4 GW tender.

Azure Power’s latest PPA with SECI follows the 600 MW PPA signed during last month under the same tender. Projects developed under the new 2,333 MW PPA will supply power for 25 years at a fixed tariff of INR 2.42 (~US 3.3 cents) per kWh and will be constructed in Rajasthan, the highest solar insolation state in India. Connectivity approval for these projects is already in place and land is fully identified and is under acquisition, the firm informs.

Commissioning of these projects is scheduled in a phase-wise manner: 1,000 MW by November 2024, 1,000 MW by November 2025 and balance 333 MW by November 2026.

Azure Power also announced that it has received the Letter Of Award (LoA) for its second wind–solar hybrid power project of 200 MW from the Maharashtra State Electricity Distribution Co. Limited (MSEDCL) to supply power for 25 years at a fixed tariff of INR 2.62 (~US 3.5 cents) per kWh. The project will entail the setting up of 133 MW solar and 67 MW wind capacity within a period of 18 months from the signing of PPA. Solar capacity for the project will be set up in Rajasthan, while the wind capacity will be in Maharashtra.

“We are pleased with our progress on the 4 GW projects with SECI. This is the largest capacity PPA ever for Azure Power in its decade long journey in the renewable energy sector and provides us with an incredible opportunity to support India’s resolve on climate change and being a destination of choice for global investments,” says Ranjit Gupta, MD and CEO, Azure Power.

“We are confident that these PPAs and the hybrid projects are a significant step forward in creating a long runway for growth and value accretion for our stakeholders, which we will continue to strengthen with our prudent choice of projects and capital deployment,” added Gupta.