Azure Power secures Letter of Award for 2 GW Greenshoe option

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New Delhi-headquartered Azure Power has received a letter of award from the Solar Energy Corporation of India (SECI) to develop 2 GW of grid-connected solar generation capacity under the greenshoe option as part of an earlier 2 GW win with SECI.

Under this greenshoe LOA, SECI will sign a 25-year power purchase agreement with the developer committing to pay INR 2.92 (US 3.9 cents) per kWh for the solar electricity generated by the project capacity.

Azure Power secured the capacity under SECI’s manufacturing-linked tender, in return for committing to establish 500 MW of annual cell and module manufacturing capacity

It intends to partner with a domestic manufacturer to establish the production lines jointly. 

The combined 4 GW capacity for the project—which can be developed anywhere in India—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 the interstate transmission system (ISTS) charges and guarantees against the curtailment of the electricity generated.

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 solar project 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.

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