Azure Power signed its largest Power Purchase Agreements (PPAs) with Solar Energy Corporation of India (SECI) for a capacity of 2,333 MW of grid-connected solar power projects. The deal follows a 600-MW PPA signed in November under the same tender, which has a total capacity of 4 GW.
Projects developed under this latest PPA will supply power for 25 years at a fixed tariff of around 3.3 cents per kilowatt-hour. The projects are slated to be developed in Rajasthan, which has some of the country’s best solar insolation rates. Grid connectivity approval reportedly is in place and land is being acquired.
The capacity is slated to enter service in phases, with 1,000 MW by November 2024, 1,000 MW by November 2025 and the remaining 333 MW by November 2026.
Azure Power also said that to received the Letter Of Award for its second wind–solar hybrid power project of 200 MW from Maharashtra State Electricity Distribution Co. Limited. Azure will supply power for 25 years at a fixed tariff of 3.5 cents per kilowatt-hour. The project will include developing up to 133 MW solar and 67 MW of wind capacity within 18 months. Solar capacity is slated for Rajasthan, while the wind capacity will be in Maharashtra.
Earlier in December, the Indian Ministry of Power approved 23 new interstate transmission system (ISTS) projects to move power from surplus regions to power-deficit regions. The estimated cost of the projects is ₹158.93 billion (roughly $2.11 billion).
The new ISTS projects will include 13 projects with an estimated cost of ₹147.66 billion ($1.96 billion) under a tariff-based competitive bidding process. The other 10 projects with an estimated cost of ₹11.27 billion ($149.38 million) will be developed under a regulated tariff mechanism.