Azure Power to invest $40 mn in Gujarat

Azure Power to invest $40 mn in Gujarat

Ahmedabad: Azure Power Pvt Ltd, a Delhi-based solar power producer, is aiming an investment to the tune of $40 million for developing a 15 MW solar photo-voltaic power plant in Gujarat.

The company made this announcement at the Delhi International Renewable Energy Conference, according to an official press release by the company.

The investment is led by Overseas Private Investment Corporation (OPIC), an agency of the United States Government that helps US businesses invest overseas and promotes economic development in new and emerging markets.

Other investors in the project include International Finance Corporation (IFC), a member of World Bank group, Helion Advisors, a venture capital firm based in Bangalore and Foundation Capital, a venture capital firm based in Menlo Park, California.

Azure Power has signed a 25-year power purchase agreement with the state of Gujarat. The project is expected to be commissioned by mid 2011. Azure Power has already operationalised India’s first private MW scale solar power plant in Awan in Punjab in December 2009, according to the release. The Awan plant has a power generation capacity of 2 MW.

Suresh Kumar, assistant secretary, US Department of Commerce said, “The potential for solar energy in India is huge, and the Azure Power project is a good example of US-India collaboration for the development of the solar energy sector. I am excited to see job creation in both India and the US through US investment and technology exports for the Azure Power project."

Once fully operational the plant will employ most advanced solar photovoltaic technology while eliminating as much carbon dioxide pollution as 2.5 million trees would annually, the company statement said.

Speaking on behalf of the state of Gujarat, D. J. Pandian, Gujarat principal secretary for Energy and Petrochemicals said, “We expect to make Gujarat the hub of solar power development in India. We have set up a target of 1,000 MW established solar power generation capacity by the end of 2012 and 3,000 MW in next five-year."