Indian company Azure Power has received a letter of award (LoA) for a 2GW interstate-transmission solar power project from the Solar Energy Corporation of India (SECI).

The LoA will add to the 2GW capacity Azure Power won under a greenshoe option from SECI in December. With this award, the company has secured a total of 4GW of solar capacity through SECI’s manufacturing-linked solar tender process.

Azure Power chief executive officer Ranjit Gupta said: “With this award, we will have a large pipeline of over 4GW for an extended period of time which will help us drive efficiencies in our project execution and operations.

“This project is also a significant step towards India’s commitment to battle climate change and to reduce carbon emissions signed under the Paris Climate Change Agreement.”

As per the terms of the greenshoe LoA, Azure will supply clean energy for a period of 25 years, at a tariff of Rs2.92 ($0.39) per kWh.

Additionally, the project includes a 500MW solar cell and module manufacturing capacity requirement. The company intends to partner with a domestic manufacturer to fulfil this.

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Gupta further added: “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 can develop the solar projects anywhere across India. It expects to build the total 4GW capacity in different phases of 1GW each. The first phase will start operating in 2022, while the current plan is to commission all 4GW by 2025.

Once operational, the project will generate enough clean energy to power about 8.5 million residents annually. This would offset nearly 200 million tonnes of carbon emissions over the life of the project.

Azure Power says the project will create approximately 15,000 direct and indirect jobs during the construction phase.