The two companies signed a 600MW power purchase agreement to supply electricity at a fixed price of 3.4 cents/kWh for 25 years

　　Recently, Azure Power announced that it has signed a power purchase agreement for a 600MW solar power generation project with Solar Energy Corporation of India (SECI), which will be integrated into the Indian interstate transmission system. This project belongs to Azure Power's 4GW manufacturing grid-connected project, and will supply electricity at a fixed electricity price of 2.54 Indian rupees (about 3.4 US cents) per kilowatt hour for 25 years.

　　The above-mentioned project will be built in Rajasthan, India with the highest solar sunshine. The approval has been in place, the land has been fully confirmed, and the land is being acquired. According to the agreement, the timetable for the commissioning of these projects is the third quarter of fiscal year 2024.

　　Ranjit Gupta, Director and CEO of Azure Power, said of the contract: "We are continuing to communicate with SECI on the progress of 4GW manufacturing related projects. We are pleased to announce that the company has signed the first batch of purchases for the 600MW capacity project. Electricity Agreement (PPA). After a long wait, this is an important milestone. Our 4GW capacity project will achieve significant value growth for stakeholders. SECI is signing power sales for more capacity projects that have won the bidding Agreement, we hope to sign the PPA after the corresponding power supply agreement (PSA) is in place. We still adhere to our policy, that is, only accept contracts that can create shareholder value and get returns higher than the cost of capital."

　　The results of the tender were announced in November 2019. In December and January 2020, SECI issued a notice of bid winning to Azure. Since then, people have been looking forward to the signing of the contract. Adani Green Energy is another winning bidder and won 8GW of capacity in the tender. As SECI signs more and more PSAs, the two companies will get their respective PPAs on a pro rata basis. The PSA signed between SECI and various state power distribution companies has been stuck on pricing issues. Until now, many distribution companies have objected to the relatively high price of Rs 2.92 per unit.

　　What has changed in the past few months is that the bidding rate for new bidding projects is getting higher and higher. The winning bidder believes that more efficient components, lower interest rates and better overall management can help them minimize the loss of project revenue at a lower final cost. Therefore, they are willing to compromise slightly on cost.

　　It is understood that Azure and Waaree Energies have cooperated on the manufacturing part of this transaction.

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　　Solar power generation system with lithium battery energy storage system is a very promising clean energy.