The TrickyScribe: Azure Power announced that it has won a 260 MW solar project in an auction conducted by Gujarat Urja Vikas Nigam Ltd (GUVNL). This is the largest allocation by GUVNL to a solar power developer, 52% of the total allocated capacity of 500 MW announced.
Azure Power, a leading independent solar power producer in India, will provide power for 25 years to GUVNL which has been rated AA- by ICRA, a Moody’s company, at a tariff of Rs 2.67 per kWh. The project will be developed by Azure Power outside a solar park and is likely to be commissioned in 2019.
Azure Power has a history of developing and operating solar power plants under the Gujarat Solar Policy 2009. Some of the first solar projects in India were built in Gujarat given several advantages the state has including high levels of solar radiation, an extensive and stable electric grid network, and the strong credit quality of its discom, GUVNL.
Azure Power developed and is operating India’s first MW-scale distributed solar rooftop project in Gujarat’s state capital city, Gandhinagar. In 2013, World Bank recognized this project as one of the Top 10 public-private partnerships in the Asia Pacific region.
Speaking on this occasion, Inderpreet Wadhwa, Founder, Chairman and Chief Executive Officer, Azure Power said, “Our long history of superior solar power operations in Gujarat right from the inception of Gujarat’s Solar Policy 2009 has contributed to our success of procuring the largest solar power contract auctioned by Gujarat. We are delighted to make a contribution towards the realization of our Prime Minister Narendra Modi’s commitment towards clean and green energy, through solar power generation.”
It may be mentioned here that Karnataka renewable energy implementing agency, Karnataka Renewable Energy Development Limited (KREDL), tendered 200 MW of solar power development project proposed at Pavagada Solar Park.
The solar power developers there signed power purchase agreements with electricity supply companies which are drafted in a way that the escoms get 90% of the power generated from the park, at a bundled tariff ranging between Rs 3.50 and Rs 4.50 a unit. The rates of Azure Power are lesser than the Karnataka project as well.