NEW DELHI, Dec. 12, 2019 /PRNewswire/ -- Azure Power, a
leading solar power producer in India, announced that it has received a letter
of award (LOA) for a 2 GWs interstate transmission
(ISTS) solar power project with Solar Energy Corporation of
India (SECI) to supply power for
25 years at a tariff of INR 2.92 (~US 4.1
cents) per kWh. The solar power project can be developed
anywhere in India and is expected
to be commissioned in staggered annual phases of 500 MW each 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. As part of the LOA, the company can elect in the next
5 days to double the capacity allocated as part of a greenshoe
option.
The project also comes with a 500 MW cell and module
manufacturing capacity requirement. Azure Power has an agreement in
principle with a leading Indian solar panel manufacturer to take a
majority ownership stake of this manufacturing requirement
and the total investment requirement by the company
is expected to be limited to 26% of equity investment.
Speaking on this occasion, Ranjit Gupta, Chief Executive Officer, Azure
Power said, "This opportunity is attractive to us for many
reasons. The tariff is 8% higher than the last discovered tariff
for an ISTS project with SECI which is one of the best solar
counterparties in India. Now with
a 5 GW portfolio, our scale and the predictability of our growth
over the next five years should allow us to capture significant
efficiencies."
About Azure Power
Azure Power (NYSE: AZRE) is a leading independent solar power
producer with a pan-Indian portfolio. With its in-house
engineering, procurement and construction expertise and advanced
inhouse operations and maintenance capability, Azure Power provides
low-cost and reliable solar power solutions to customers throughout
India. It has developed,
constructed and operated solar projects of varying sizes, from
utility scale, rooftop to mini & micro grids, since its
inception in 2008. Highlights include the construction of
India's first private utility
scale solar PV power plant in 2009 and the implementation of the
first MW scale rooftop project under the smart city initiative in
2013.
For more information, visit: www.azurepower.com.
Forward Looking Statements
This press release contains forward-looking statements within
the meaning of Section 21E of the Securities Exchange Act of 1934,
as amended and the Private Securities Litigation Reform Act of
1995, including statements regarding the Company's future financial
and operating guidance, operational and financial results such as
estimates of nominal contracted payments remaining and portfolio
run rate, and the assumptions related to the calculation of the
foregoing metrics. The risks and uncertainties that could cause the
Company's results to differ materially from those expressed or
implied by such forward-looking statements include: the
availability of additional financing on acceptable terms; changes
in the commercial and retail prices of traditional utility
generated electricity; changes in tariffs at which long term PPAs
are entered into; changes in policies and regulations including net
metering and interconnection limits or caps; the availability of
rebates, tax credits and other incentives; the availability of
solar panels and other raw materials; its limited operating
history, particularly as a new public company; its ability to
attract and retain its relationships with third parties, including
its solar partners; its ability to meet the covenants in its debt
facilities; meteorological conditions and such other risks
identified in the registration statements and reports that the
Company has filed with the U.S. Securities and Exchange Commission,
or SEC, from time to time. All forward-looking statements in this
press release are based on information available to us as of the
date hereof, and the Company assumes no obligation to update these
forward-looking statements.
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SOURCE Azure Power