Azure Power Obtains LoA for ISTS Solar Power Project Worth 2,000 MW

Azure Power has announced it has established the letter of award (LOA) for a 2,000 MW interstate transmission (ISTS) solar power project with Solar Energy Corporation of India (SECI) ensuing the exercise of a greenshoe option as part of a former 2,000 MW 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 Azure Power aims to partner with a domestic manufacturer for this requirement," the company said in a declaration.

The combined capacity for the project is 4 GW 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.

"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," Ranjit Gupta, Chief Executive Officer, Azure Power said.

He further that associating with domestic manufacturers of solar PV modules in India as part of the project will help drive India's solar cell and module manufacturing sector into becoming a global leader.