India's Azure Power FY Q2 results hit by rising costs

December 13 (Renewables Now) – Indian solar power producer Azure Power Global Ltd (NYSE:AZRE) has been awarded a 2-GW solar interstate transmission (ISTS) project with a manufacturing component in India.

The company said on Friday that it won the specific project in an auction held by the Solar Energy Corporation of India (SECI). The power plant can be installed anywhere in India in phases of 500 MW each, the first one of which will be commissioned by 2022. The entire complex is planned to become operational by 2025.

Having received a letter of award (LOA), Azure Power expects to sign a 25-year power purchase agreement (PPA) at a tariff of INR 2.92 (USD 0.041/EUR 0.037) per kWh. Under the LOA, the developer has the right to double the allocated capacity as part of a greenshoe option in the next five days, it said.

The project has a requirement for the installation of 500 MW of solar cell and module production capacity. Azure Power said it has agreed in principle with an unnamed domestic manufacturer to get majority ownership of this scheme. Thus, it will be responsible only for 26% of the equity investment to cover the requirement.

“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,” said CEO Ranjit Gupta.

(INR 10 = USD 0.141/EUR 0.127)

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