Azure Power project commissions grind to a halt as COVID bites

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on reddit
Reddit
Share on email
Email
Azure Power expects project commissioning to return towards the end of the year. Image: Azure Power.

Azure Power’s project commissioning activity ground to a halt in the three months ended 30 June 2020, as the impacts of COVID-19 were felt strongly in India.

But there may be better news for the independent power producer moving forward following a doubling in its operating and committed project pipeline, which now stands at more than 7GW.

Reporting its results for the Q1 2020/21 fiscal period, Azure Power confirmed that there was “no significant commissioning” activity that took place during the quarter, with just 1MWac / 3MWdc having been commissioned during the three months.

This was squared solely with the ongoing COVID-19 pandemic, which continues to be felt strongly in Azure’s key market. The company did, however, state that it remained confident that it will hit revised commissioning dates, with a flurry of activity expected. Despite construction activity improving, Azure said, it had yet to reach pre-COVID or expected levels for this time of year.

India has experienced a perhaps delayed onset from the novel coronavirus compared to other solar markets, but it has not been any less severe for project development. New analysis published today by Mercom reveals that just 205MW of new solar capacity was installed in India across all sectors in the three months ended 30 June, the lowest quarter for deployment in the country since 2014.

The group’s operating capacity reached 1,809MW as of 30 June 2020, up 12% year-on-year. But its operating and committed pipeline – which includes projects that have contractual commitments to build – topped 7,115MW, more than double the figure as of Q1 2019/20. That figure does include around 4GW of projects for which Azure has received Letters of Award, but power purchase agreements with Solar Energy Corporation of India (SECI) have yet to be signed.

Generation for the quarter stood at 883.9 million kWh, up 26% year-on-year based on new additions to its portfolio and improved asset performance. This helped revenue edge up 16% year-on-year to INR3,940 million (US$52 million), however net profit amounted to just INR46 million (US$0.6 million) owing to a US$3.5 million charge relating to debt refinancing.

Read Next

June 29, 2022
Spanish independent power producer (IPP) Opdenergy is planning to launch an initial public offering (IPO) to finance its target of reaching 3.3GW of renewables assets in operation and under construction by 2025.
June 27, 2022
Tata Power Solar Systems said it has commissioned India’s largest floating PV plant, a 101.6MWp project in the southern state of Kerala.
June 23, 2022
The world’s total solar capacity will reach 2,044GW by 2031, with China continuing to lead the way in deployment, making up nearly half (47%) of the world's 1,190GW net solar capacity additions through to 2031, according to research firm Fitch Solutions.
June 22, 2022
Large developers of hybrid projects in India could see a 17% equity IRR by implementing five measures, according to a report by the IEEFA.
June 21, 2022
State-owned utility GUVNL has opened a tender for renewables paired with energy storage to bring off-grid electricity in Gujarat, India.
June 16, 2022
India and Germany’s solar sectors are set to outperform in the coming years, but both markets will fall short of government PV deployment targets, according to Fitch Solutions.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
October 4, 2022
New York, USA
Solar Media Events
October 11, 2022
Virtual event