Independent power producer (IPP) Azure Power has announced it won the bid for a 75 MW solar PV project in Assam. The company will sign a 25-year power purchase agreement (PPA) with Assam Power Distribution Company Limited (APDCL), at a weighted tariff of INR3.37/kWh. Azure power says it is aiming to commission the project next year.
According to the company’s statement, the north-eastern state of Assam has been struggling to meet electricity demand and suffered an energy shortage of 4.2% as demand rose 9% during 2017.
Inderpreet Wadhwa, Founder, Chairman and CEO of Azure Power, said: “We are pleased to announce our win in Assam and with this, we continue to demonstrate our strong project development, engineering, and execution capabilities.”
In January, the government of Assam issued a gazette stating a target to install an additional 590 MW of solar PV by 2019-2020. According to the document, all utility scale solar power will be sold through 25-year PPAs to APDCL, with the state government providing a guaranteed payment mechanism to PV project investors. The PPAs will be brokered by APDCL on an independent, competitive basis.