The investment is to be made between FY 2021 to 2024-25
Azure Power, India’s leading utility scale solar power producer, is forecasting an investment of around $ 3.7 billion by the end of financial year (FY) 2024-25. The New York Stock Exchange (NYSE) listed company has firmly stood its ground by investing solely in the solar industry. In its recent capex (capital expenditure) forecast, the company envisions an investment in the range of $ 2.6 billion to $ 3.7 billion. Azure Power’s highest investment will be $ 9 billion made in FY 2021.
As India’s leading solar power producer, Azure Power’s current committed portfolio stands at 7.1 GW while its operating portfolio stands at 1.8 GW. The company only just bagged a 4 GW of grid connected solar power projects likely to be completed in 2025. With new projects constantly being added to its kitty, the company is joining forces with Waree Energies for the manufacturing of 500 MW capacity. Waree Energies is one of the largest solar manufacturers in India. However, the company has no plans to enter the manufacturing business, and will stick to its existing niche of solar power production. Most of the company’s projects are tied up with government based establishments. Aside from utility scale solar projects, the company is also a leader in rooftop solar installations in India. Azure power has recently bagged 2 GW (with 500 MW manufacturing capacity) in SECI’s (Solar Energy Corporation of India) recently concluded auction for manufacturing oriented solar power projects. A blanket rate of Rs. 2.92 will be the tariff for majority of Azure Power’s newly bagged 4 GW capacity.
Bringing cutbacks into effect, the company has sold 450 MW projects and will withdraw from another 150 MW projects that do not comply with minimum return metrics. A reduction in the cost of modules and balance of systems (BOS); and the use of green bonds and bi-facial modules will aid cost cutting and increase profitability in the long run.
Drastic changes in policies, a fluctuating investing environment, DISCOM woes and other issues plague India’s solar power industry. However, Azure Power’s huge portfolio and robust strategies indicate a promising trajectory for the solar power producer.
Azure Power is one of India’s leading solar power producers. Founded by Inderpreet Wadhwa in 2008, the company installed India’s first private utility scale solar project in 2009. The company’s vision is to be a cost competitive power producer. In a series of firsts, the company also installed the country’s first distributed solar rooftop project in 2013. The company has a footprint in 24 states (including union territories) in India. To add to its list of accolades, Azure power issued India’s first green bond.
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