Azure Power closes funding for Rajasthan & Karnataka solar projects ahead of schedule

India’s solar energy developer and producer Azure Power has announced an early closing of a financing deal worth Rs 6 Billion for its 200-MW solar park in Bhadla, Rajasthan and another financing deal of worth Rs 4 billion for a 100-MW solar plant in  Karnataka. It has also signed 415 rooftop solar PPAs in Madhya Pradesh.

The company was among the leading solar power producers who bagged the Bhadla project through an auction conducted by Solar Energy Corporation of India (SECI) last year. Azure’s solar plant at Bhadla is likely to be commissioned in 2019, the company said.

The total financing deal closes a total of Rs 10 billion for Azures Power, to finance two large-scale solar projects totaling 300 MW, both ahead of schedule.

Secured at an auction held by Karnataka Renewable Energy Development Ltd, the 100-MW solar park will be implemented in the same area of the Pavagada Solar Park with Karnataka Solar Power Development Corporation Ltd (KSPCL) in charge of the construction. Currently, Azure Power has 250 MW in its Karnataka portfolio, one of the largest in the state.

Bhadla on other hand was a sore point for the company as the auction was riddled with high module price trends, PPA issues, regulatory hurdles and delays lastly due to Safeguard duty. But the recent finance deal will help the company to develop this PV project by 2019.

“This financing is a testament to our strong financing, project development, engineering and execution capabilities,” Inderpreet Wadhwa, Founder, Chairman and Chief Executive Officer, Azure Power, said.

In 2017, at the 250 MW Bhadla Solar Park auction, Azure Power won the bid to develop 200 MWs by quoting the lowest tariff of Rs 2.48 and ReNew Power won the remaining 50 MWs with a bid of Rs 2.49.

Apart from these large utility scale projects, Azure has also been executing rooftop solar projects with a major boost to this business by signing of over 400 PPAs for 11 MW of solar rooftop installation in Madhya Pradesh under RESCO scheme.