2 GW Greenshoe Option LOA For Azure Power

• Azure Power has secured an additional 2 GW project development capacity under SECI's manufacturing linked tender
• In total it has now won 4 GW of project development capacity to be set up across India in staggered annual phases of 1 GW
• First commissioning is expected by 2022 and full commissioning by 2025
• For the original 500 MW manufacturing capacity, it has partnered with Waaree Energies and for the 500 MW under greenshoe option, it will be partnering with a domestic manufacturer

The Solar Energy Corporation of India (SECI) has handed over a letter of award (LOA) to  Azure Power for 2 GW solar power project development capacity under a greenshoe option that the Indian solar power producer decided to go for. With this LOA, Azure Power has now secured 4 GW project development capacity in total under SECI's manufacturing linked tender (see Azure Power Wins SECI's Manufacturing Linked Tender).

This 4 GW capacity will be developed in phases anywhere in India using the interstate transmission system (ISTS). It currently hopes to commission this capacity in staggered annual phases of 1 GW with first commissioning expected by 2022 and full commissioning by 2025. Power generated by all of this 4 GW will be sold to SECI for INR 2.92 per kWh for a period of 25 years.

The LOA for additional 4 GW project capacity also includes 500 MW of manufacturing capacity for which Azure Power will be partnering with a domestic manufacturer. For the original 500 MW manufacturing capacity under this auction, Azure Power previously said it has partnered with Indian solar cell and module maker Waaree Energies (see Azure Power Suffers $19 Million Net Loss In Q3/2020).

"With this award, we will have a large pipeline of over 4 GW for an extended period of time which will help us drive efficiencies in our project execution and operations," said Azure Power CEO Ranjit Gupta, adding, "Partnering with domestic manufacturers of solar PV modules in India as part of the project will help propel India's solar cell and module manufacturing sector into becoming a global leader."

Azure Power and Adani Green Energy Limited (AGEL) emerged as the 2 winners of SECI's 8 GW solar PV project tender linked with 2 GW of manufacturing capacity. Both won 2 GW project capacity and 500 MW of manufacturing capacity and had the greenshoe option to expand their share in both segments. AGEL exercised the option to increase its manufacturing share under the auction with an additional 1.5 GW to take it to 2 GW, and another 6 GW project development capacity to a total of 8 GW, making it the world's largest solar award (see World's Largest Solar Award Goes To Adani).