Azure Power making ‘steady improvements’ as operational capacity exceeds 2.5GW

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A solar installation owned by Azure Power in Rajasthan. Image: Azure Power.

Azure Power exceeded the upper end of its revenue guidance for its Q3 fiscal year thanks to the addition of new renewables projects.

In the quarter ended December 2021, the Indian independent power producer’s revenue increased 27% year-on-year to US$60.2 million, more than US$2 million higher than the upper end of its prior guidance.

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This was in part due to the company commissioning 313MWac of renewables during the quarter, taking its operational capacity up to 2,523MW, 37% higher than Q3 of the previous year.

“We continue to see steady improvements on key operational parameters we report,” said Azure Power CEO Ranjit Gupta, adding that the biggest development for the company in recent months was the signing of separate power purchase agreements with the Solar Energy Corporation of India (SECI) for 2,933MW of PV projects.

“This 2.9GW capacity assures sustained base growth for Azure over the next four fiscal years and the attractive tariffs provide a long runway of profitable, value accretive growth,” Gupta said during a conference call with investors.

While adjusted EBITDA for Q3 jumped 152% year-on-year to US$52.9 million, thanks in part to additional revenue from new projects, Azure posted a net loss of US$8.2 million.

Since the end of the quarter, the IPP has completed what it said is India’s largest single-site solar project, a 600MW install in the state of Rajasthan that it has since refinanced.

Gupta also revealed that the company has formed a new business unit focused on delivering solutions such as round-the-clock power, energy storage and green hydrogen for energy-intensive industries.

Azure expects Q4 revenues to be US$68 – 70 million, while operational renewables capacity for the fiscal year ending 31 March 2022 is forecasted to be 2,855 – 2,955MW. However, the company doesn’t expect to add additional capacity during the following fiscal year.

22 May 2024
London, UK
At the time of writing, Europe had had its most successful year in terms of Power Purchase Agreements (PPAs) with a record 7.8GW of renewable energy contracts signed. As we gather in May 2024 for the third edition of the Renewable Energy Revenues Summit, the energy landscape continues to evolve rapidly, influenced by the beating drum of climate change, volatility around power prices and the need to decarbonise power procurement as well as generation.

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