Azure Power, India`s leading independent solar power producer, has today announced a long term financing of USD 70.35 million by Export Import Bank of the United States for its solar power plant at Nagaur, Rajasthan. The plant is an expansion of Azure Power`s existing 5 MW Nagaur PV facility to 40MW, making it the largest solar power plant to be developed at a single location under the National Solar Mission. The construction of the plant has commenced and it is expected to be operational by February 2013.
Talking about the project financing, Inderpreet Wadhwa, CEO, Azure Power said, ``Our partnership with US Exim bank is unmatched in the Indian solar industry. This investment enables the expansion of our Nagaur PV facility to 40MW, the largest solar PV project to be developed at a single location in India under the National Solar Mission. This is a great example of Indo-US cooperation in clean energy. And with this project we are committed to working towards meeting the grid parity objective of the National Solar Mission in India.``
The project demonstrates Azure Power`s cost leadership and continuous push towards grid parity for solar power in line with the objectives of the National Solar Mission. Azure`s first project in Punjab sells power at Rs 17.91/kWh, followed by its Gujarat project that sells power at Rs 15/kWh. Last December, Azure Power commissioned its plant under JNNSM Ph-I Batch-I in Rajasthan that sells power at Rs 11.94/kWh. The additional capacity at this project continues the drive towards grid parity and will sell power at Rs 8.21/kWh to NVVN. Azure Power expects to reach solar grid parity by 2017.
Azure Power had commissioned the 5MW Nagaur plant in December last year. The 40MW solar plant set up over 346 acres of wasteland will have a positive impact on the social and economic development of the local community. It will generate reliable power and generate income for the community through local employment for construction, installation, security and maintenance of this facility.Once fully operational, this solar plant will reduce carbon emissions of up to 66,000 metric tons per year or in other words the equivalent of removing about 12,000 cars off Indian roads per year.