Azure Power reaches 2GW of operational solar despite module supply issues

Share on facebook
Share on twitter
Share on linkedin
Share on reddit
Share on email
Image: Azure Power.

Azure Power overcame module procurement challenges to end its third quarter with 1,987MW of operational solar capacity, a 10% increase year-on-year.

This jump helped the independent power producer post operating revenues of US$48.2 million (+15.6% YoY) for the three months ended 31 December 2020. While the India-based firm recorded a net loss of US$14.9 million due to stock appreciation rights expenses, this was an improvement on the US$18.6 million loss in the year-ago quarter.

Despite progress developing its pipeline, the company has struggled to source solar modules. It was revealed by COO Murali Subramanian in a conference call with investors that “whilst we have overcome many challenges and the level of construction activity has continued to increase, new supply constraints have arisen.”

He said the firm has been able to navigate delays by leveraging its size and large backlog to secure modules, but nonetheless “getting modules remains a real challenge”.

As of December 2020, Azure’s operating and committed solar capacity is 7,115MW, an increase of 1,815MW year-on-year. The committed capacity includes 4,000MW for which it has received letters of award, but not signed power purchase agreements.

Subramanian said the company has maintained a focus on improving its operations through a range of adjustments. “In this fiscal year, we increased our block sizes, reduced the amount of cable needed by using junction boxes, and designed larger table sizes with reduced spacing,” he said. “We have seen our yields improve as we increase the adoption of string inverters and aluminum cables and implement dry cleaning robots to prevent dust build-up, improving our efficiency.”

He added that the IPP is planning to test the integration of battery storage at some PV plants and is working on development opportunities for solar-plus-wind hybrid projects.

Read Next

October 22, 2021
The clean energy business of US utility NextEra Energy had a record quarter of origination success in Q3, adding approximately 2,160MW to its backlog, including 515MW of new solar projects.
October 20, 2021
Infrastructure fund manager DIF Capital Partners is acquiring a majority interest in ib vogt, in a deal that is expected to fast track the solar developer’s transition towards an independent power producer (IPP) model.
October 18, 2021
US independent power producer Silicon Ranch has acquired Clearloop, a start-up that helps companies offset their carbon emissions by funding new solar projects.
October 13, 2021
Reliance New Energy Solar (RNES) has invested US$29 million in German wafer technology company NexWafe’s Series C financing round as it looks to establish wafer production facilities in India.
October 11, 2021
Independent power producer Nexif Energy has secured a ten-year power supply agreement (PSA) for a 75MWp solar plant to be constructed in the Philippines.
October 11, 2021
A subsidiary of Indian conglomerate Reliance Industries has acquired solar module manufacturer REC Group and a 40% stake in EPC and O&M solutions provider Sterling and Wilson.

Subscribe to Newsletter

Upcoming Events

Upcoming Webinars
November 10, 2021
8am (PST) | 5pm (CET)
Solar Media Events
December 1, 2021