Azure Power, an independent power producer in the India, has received the letter of award (LOA) for its first wind project, which is a 120 MW ISTS-connected project with Solar Energy Corporation of India (SECI) to supply power for 25 years at a quoted tariff of Rs 2.70 per kWh. Azure Power’s project is part of SECI’s 1,200 MW ISTS Tranche – XI tender and will be built in Karnataka within 18 months of the power purchase agreement’s execution (PPA).
Azure Power is a renewable energy company based in India. Since its establishment in 2008, the company has been involved in the sector as a developer, constructor, and operator of utility-scale renewable projects. It also helped set up India’s first private utility-scale solar plant in 2009.
In July 2021, Azure Power signed a five-year syndicated financing deal of $163 million with Mitsubishi UFJ Financial Group (MUFG) for its 300 MW solar project, which is being developed in Rajasthan. For the transaction, MUFG acted as a lead manager, hedging bank, facility agent, and bank issuing line of credit. The deal meant that MUFG secured certification for a total renewable capacity of 2.6 GW over the past six months. It is also the financier’s third renewable project deal, where it acted as a green structuring advisor.
In 2020, Azure power reported that financing for 1,290 MW of its projects under construction projects including the Assam 1 (90 MW) and Rajasthan 6 (SECI 600 MW) projects has secured debt funding. Further, Azure also reported receiving a commitment from EDC, Societe Generale, and MUFG Bank for the debt funding of the Rajasthan 8 (SECI 300 MW) project, and financing documentation and due diligence were in process.
