Independent solar power producer Azure Power has signed Power Purchase Agreements (PPAs) for 600 megawatts (MW) ISTS (interstate transmission system) connected solar power projects with Solar Energy Corporation of India (SECI).
Under its 4 gigawatts (GW) manufacturing linked projects, Azure will supply power for 25 years at a fixed tariff of Rs 2.54 per kilowatt-hour (KWh).
The projects are to be constructed in Rajasthan, the highest solar insolation state in India, for which connectivity approval is in place and land has been fully identified and is under acquisition. The commissioning timeline for the projects as per the agreement is Q3 FY 2024.
Speaking on this occasion, Ranjit Gupta, MD and CEO, Azure Power said, “Continuing on our communication regarding our progress with SECI on the 4 GW manufacturing linked projects, we are happy to announce the signing of our first PPAs for 600 MW capacity”.
This is a significant milestone for the company given the long wait. With things now falling into place, Azure is on its way to see 4 GW pipeline turn into contracted capacity and it will help the company realise significant value accretion for its stakeholders. “We understand SECI is progressing to tie up power sale agreements for further capacity in the tender and we expect to sign PPAs when the corresponding PSAs are in place. We remain committed to our policy to only take on contracts that create shareholder value and earn returns above our cost of capital,” added Gupta.