India's Azure Power commissions 600-MW solar project, offtake at $34/MWh

India's Azure Power has commissioned the final 100-MW phase of a 600-MW solar power project in Bikaner, Rajasthan, signing a 25-year power purchase agreement (PPA) with state-run Solar Energy Corp. of India Ltd. (SECI) at Rupees 2.53/kWh ($34/MWh), an official at the Ministry of New and Renewable Energy said Jan. 5.

The power is to be supplied to the distribution companies of the states of Jharkhand, Odisha and Haryana, the official said.

The price is a notch higher than a 25-year PPA signed between Adani Green Energy Ltd. and SECI at Rupees 2.49/kWh on Dec. 14, covering some 4.67 GW of renewable capacity.

"Since this project was initiated around the onset of COVID-19 in India, we faced several challenges amid lockdowns and safety concerns," Azure Power CEO Ranjit Gupta said.

"Despite the challenges and while prioritizing the health and safety of all our employees and communities, we have managed to deliver high performing assets."

India has one of the fastest-growing solar power markets in the world with 48.56 GW of capacity installed. The country's renewable capacity totals 104 GW, power ministry data showed.

India has a target of 500 GW of renewable capacity by 2030 under commitments made at the UN Climate Change conference in November.

The government is encouraging local manufacturing of solar components with a Rupees 4.5 billion Production Linked Incentive Scheme and customs duty of 25% on solar cells and 40% on solar modules from April 1.

Azure Power now has 2.51 GW of operational solar capacity across India.