Market Overview

Azure Power Wins Largest Capacity (600MWs) under India's Largest Solar Auction

  • Offtaker is AA+ domestic debt rated government entity (SECI)
  • Azure Power's tariff is ~4% above the lowest bid in the same auction
  • First project for Azure Power's 2020 pipeline

Azure Power (NYSE:AZRE), one of India's leading independent solar power
producers, announced it has won a 600 megawatt (MW) solar power project
through an auction conducted by Solar Energy Corporation of India
(SECI), a Government of India enterprise and a company with an AA+
domestic debt rating by ICRA, a Moody's Company. The project is the
largest solar auction in India and also the first Interstate
Transmission System (ISTS) grid connected solar PV project auctioned by
SECI. Azure Power expects to sign a 25-year power purchase
agreement with SECI to supply power at a tariff of INR 2.53 (~US
3.9cents) per kWh, approximately 4% higher than the lowest bid in the
same auction. The project can be developed outside a solar park anywhere
in India and is expected to be commissioned by 2020.

This press release features multimedia. View the full release here:

Azure Power Solar Plant (Photo: Business Wire)

Azure Power Solar Plant (Photo: Business Wire)

The 600 MWs win, out of the total 2,000 MWs tendered in the auction, is
the largest allocation of any solar auction in India. Azure Power's
total portfolio is spread across 23 states with approximate 80% of its
operating or committed projects with counterparties that have domestic
debt ratings that are A or higher.

Speaking on this occasion, Inderpreet Wadhwa, Founder, Chairman and
Chief Executive Officer, Azure Power
said, "We are pleased to
announce our largest capacity win and with this, we continue to
demonstrate our strong project development, engineering, and execution
capabilities Our long history of superior solar power operations right
from the inception of the National Solar Mission has contributed to our
success of procuring one of the largest solar power contracts with SECI.
We are delighted to make this contribution towards the realization of
our Hon'ble Prime Minister's commitment towards clean and green energy,
through solar power generation."

About Azure Power

Azure Power (NYSE:AZRE) is a leading independent solar power producer
with a pan-Indian portfolio over 2 gigawatts. With its in-house
engineering, procurement and construction expertise and advanced
in-house operations and maintenance capability, Azure Power provides
low-cost and reliable solar power solutions to customers throughout
India. It has developed, constructed and operated solar projects of
varying sizes, from utility scale, rooftop to mini & micro grids, since
its inception in 2008. Highlights include the construction of India's
first private utility scale solar PV power plant in 2009 and the
implementation of the first MW scale rooftop project under the smart
city initiative in 2013.

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Forward Looking Statements

This press release contains forward-looking statements within the
meaning of Section 21E of the Securities Exchange Act of 1934, as
amended, and the Private Securities Litigation Reform Act of 1995. The
risks and uncertainties that could cause the Company's results to differ
materially from those expressed or implied by such forward-looking
statements include: the availability of additional financing on
acceptable terms; changes in the commercial and retail prices of
traditional utility generated electricity; changes in tariffs at which
long term PPAs are entered into; changes in policies and regulations
including net metering and interconnection limits or caps; the
availability of rebates, tax credits and other incentives; the
availability of solar panels and other raw materials; its limited
operating history, particularly as a new public company; its ability to
attract and retain its relationships with third parties, including its
solar partners; its ability to meet the covenants in its debt
facilities; meteorological conditions and such other risks identified in
the registration statements and reports that the Company has filed with
the SEC from time to time. In the press release, megawatts portfolio
represents the aggregate megawatt capacity of solar power plants
pursuant to PPAs, signed or allotted or where the Company has been
cleared as one of the winning bidders or won reverse auction, but yet to
receive letter of allotment. All forward-looking statements in this
press release are based on information available to us as of the date
hereof, and the Company assumes no obligation to update these
forward-looking statements.

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