Azure Power Secures Letter of Award for 2 GW Greenshoe Option From SECI

Azure Power has received the LOA for a 2 GW ISTS solar project with SECI pursuant to the exercise of a greenshoe option as part of an earlier 2 GW win.

Azure Power, a leading solar power producer in India, has announced that it has received the letter of award (LOA) for a 2 GW interstate transmission (ISTS) solar power project with Solar Energy Corporation of India (SECI) pursuant to the exercise of a greenshoe option as part of an earlier 2 GW win with SECI.

Under this greenshoe LOA, Azure will supply power for 25 years at a tariff of Rs 2.92 per kWh. The project also comes with a 500 MW cell and module manufacturing capacity requirement and the firm 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.

Commenting on this award, Ranjit Gupta, Chief Executive Officer, 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. 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 entire project, when complete, will provide electricity to about 8.5 million residents annually, create about 15,000 direct and indirect jobs and avoid approximately 200 million tonnes of carbon emissions over the life of the project, which is equivalent to avoiding ~2 GW capacity of coal-fired capacity.