Azure Power inked largest ever 2,333 MW PPA with SECI
Azure Power signed PPA as part of a 4 GW manufacturing-linked project. The 2333 MW of projects are scheduled for commissioning in phases, with 1,000 MW by 2024, 1,000 MW by 2025, and the balance of 333 MW by 2026.
With its 4 GW manufacturing-linked project, Azure Power announced it had entered into the largest-ever Power Purchase Agreement (PPA) with Solar Energy Corporation of India (SECI) for 2,333 MW of ISTS-connected solar power projects.
In a similar tender, 600 MW of PPAs were also signed last month. As part of this agreement, the solar projects will be developed in Rajasthan, the state with the highest solar insolation rate in India, and will supply power for 25 years at a fixed rate of INR 2.42 (*US 3.3 cents) per kWh.
These projects already have approval for the connectivity, and land has been identified and is in the process of acquisition.
There are three phases for the commissioning of these projects: 1,000 MW by November 2024, 1,000 MW by November 2025, and the balance 333 by November 2026.
Azure Power recently announced that Maharashtra State Electricity Distribution Co. Limited (MSEDCL) has awarded it a Letter Of Award (LOA) for its second wind-solar hybrid power project of 200 MW. A 25-year agreement will commit the project to supply energy at a fixed rate of INR 2.62 rupees (US 3.5 cents) per kilowatt hour, involving the installation of 133 MW of solar and 67 MW of wind capacity within 18 months of the PPA signing. The project’s solar and wind capacities will be built in Rajasthan and Maharashtra, respectively.
“We are satisfied with our work with SECI on the 4 GW projects.Our 10-year journey in renewable energy has led to Azure Power signing the largest capacity PPA so far. The deal is an incredible opportunity for Azure Power to support India’s efforts to combat climate change, as well as being a destination of choice for investors globally,” said Ranjit Gupta, MD and CEO of Azure Power.
We believe that these PPAs and Hybrid Projects mark a positive step forward in creating a long runway for growth and value accretion for our stakeholders, and we are committed to continuing to strengthen that runway through our prudent selection of projects and capital expenditures,” concluded Gupta.
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