Azure Power to deploy 2GW of PV capacity through SECI’s manufacturing-linked tender

• The Indian developer is committed to install 500 megawatts of manufacturing capacity in collaboration with a local panel producer. The agreement includes an option to double the power generation capacity, the decision for which is expected to be taken tomorrow.

India’s Azure Power has won the auction held by SECI to deploy 2 gigawatt of grid-link photovoltaic capacity. In its turn, Azure is obliged to develop 500 megawatts of production capacity yearly. The manufacturing facilities will be built together with a local panel manufacturer. 

Under the terms of 25-year PPA between Azure and Solar Energy Corp., the power generated will be purchased at the price of 0.041 USD per kilowatt hour.

The project is scheduled for commissioning in phases. The first phase is slated to become operational in two years, the final phase – three years later. The power plants may be installed in any part of the country. Besides, the agreement includes a green shoe clause, providing an option of increasing the power capacity deployed twice. 

Azure Power has already installed 5 gigawatts of PV. The Indian power producer and developer is the only tenderer who has demonstrated consistent interest in SECI’s auction. The tender has been revised, downsized and delayed quite a number of times. Eventually, the target was 7 gigawatts of power generation in exchange for 2 gigawatts of production capacity per year.