Azure Power has received a letter of award (LOA) for a 300 MW solar power ISTS project through a 1.2 GW auction conducted by Solar Energy Corporation of India (SECI), a Government of India enterprise and a company with an AA+ domestic debt rating by ICRA, a Moody’s Company.
With this win, Azure Power has 1.5 GWs of ISTS projects with sovereign counterparties, which is the largest such portfolio in India.
Azure Power expects to sign a 25-year power purchase agreement with SECI to supply power at a tariff of INR 2.54 (~US 3.7 cents) per kWh.
The project can be developed outside a solar park anywhere in India and is expected to be commissioned by 2021.
The company has over 1.5 GWs of ISTS interconnection approvals in place which reduces development risk for its ISTS portfolio.
Speaking on this occasion, Ranjit Gupta, Chief Executive Officer, Azure Power, said, “Our long history of superior solar power operations with SECI has contributed to our success in winning this 300 MW project. Azure has a strong track record of winning projects in every ISTS auction conducted by SECI till date. This is a direct result of our strong project development and execution capabilities. We have secured ISTS interconnection approvals for over 1.5 GWs well ahead of schedule in some of the best sites in the highest solar irradiation locations, thus minimizing execution risk and maximizing returns.”