NEW DELHI, Dec. 23, 2020 /PRNewswire/ -- Azure Power
continues to work towards signing PPAs for the 4 GW manufacturing
linked tender for which a Letter of Award ("LOA") has already been
received. The Solar Energy Corporation of India ("SECI") has informed us that so far
there has not been adequate response from the state electricity
distribution companies ("DISCOMs") for SECI to be able to sign the
PSAs at this stage even though we have a LOA. SECI has mentioned
that they will be unable to sign PPAs until PSAs have been signed,
and they have committed to inform Azure Power of developments in
their efforts with the DISCOMS. Capital costs, interest rates
and foreign exchange rates have improved since Azure Power won the
4 GW auction a year ago which have resulted in lower tariffs in
other recent SECI auctions. We expect these savings likely will be
passed on to state electricity distribution companies (DISCOMS). We
expect a tariff markdown from the price discovered in the auction,
which will facilitate signing of PSAs. We will continue our
discussions with SECI towards signing PPAs in respect of the 4GW
tender and expect the PPAs to be signed in tranches over a period
of time. We will continue our policy to only take on contracts that
create shareholder value and earn returns that are above our cost
of capital.
About Azure Power
Azure Power (NYSE: AZRE) is a leading independent solar power
producer with a pan-India
portfolio of 7.1 gigawatts on September 30,
2020 of which 1.8 GWs is operational, 1.3 GWs are under
construction and 4.0 GWs have received a Letter of Award but for
which PPAs have yet to be signed. Azure Power developed
India's first private utility
scale solar project in 2009 and has been at the forefront in the
sector as a developer and operator of solar projects since its
inception in 2008. With its in-house engineering, procurement and
construction expertise and advanced in-house operations and
maintenance capability, Azure Power manages the entire development
and operation process, providing low-cost solar power solutions to
customers throughout India. 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 issues related to the corona
virus; supply disruptions; power curtailments by Indian state
electricity authorities 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.
Investor Contact
Nathan
Judge, CFA
ir@azurepower.com
Media Contact
Samitla Subba
pr@azurepower.com
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SOURCE Azure Power