Azure Power strikes ‘first-of-its-kind strategic partnership’ with investment in solar manufacturer

Premier Energies is bidding to build a 1GW solar cell and module manufacturing facility in India. Image: Premier Energies Group

Indian independent power producer (IPP) Azure Power has made a US$12.9 million investment in solar manufacturer Premier Energies while also locking in domestic PV module supply from the company.

Azure has agreed to procure up to 600MW of solar modules in each of the next four years from Premier, which states its module manufacturing capacity to be 1.25GW.

This article requires Premium SubscriptionBasic (FREE) Subscription

Unlock unlimited access for 12 whole months of distinctive global analysis

Photovoltaics International is now included.

  • Regular insight and analysis of the industry’s biggest developments
  • In-depth interviews with the industry’s leading figures
  • Unlimited digital access to the PV Tech Power journal catalogue
  • Unlimited digital access to the Photovoltaics International journal catalogue
  • Access to more than 1,000 technical papers
  • Discounts on Solar Media’s portfolio of events, in-person and virtual

Or continue reading this article for free

Azure will also make a US$12.9 million investment in the company – split between a subscription for equity shares and convertible debentures – which will help Premier establish a 1GW cell and module manufacturing project in India.

Chiranjeev Saluja, managing director at Premier Energies, described the deal as a “first-of-its-kind strategic partnership” between an IPP and solar manufacturer in India.

“Having a long-term supply visibility is an important factor towards de-risking our business. Premier is operating one of the most advanced state-of-the-art solar cell and module lines in the country, and we are pleased to partner with Premier,” Alan Rosling, chairman at Azure Power, said.

Chasing a 450GW installed renewables capacity target by 2030, India’s solar sector is facing headwinds in the shape of soaring demand for India-made PV modules after the country’s government implemented tariffs of 40% on imported PV modules and 25% on cells.

That basic customs duty (BCD), coupled with a production linked incentive to support manufacturers, have been implemented to stimulate procurement of domestically manufactured goods under Prime Minister Modi’s ‘Made in India’ initiative. The policy, however, has not come without its costs.

Spiralling module costs has risked threatening the economics of 25GW of solar projects in India – 5GW of which are at high risk – and stakeholders have warned of increasing tariffs for solar projects if the situation does not ease.

But last week India’s energy minister RK Singh publicly resisted calls to tweak the BCD, stating that he did not “want any Chinese imports”.

26 November 2024
Málaga, Spain
Understanding PV module supply to the European market in 2025. PV ModuleTech Europe 2024 is a two-day conference that tackles these challenges directly, with an agenda that addresses all aspects of module supplier selection; product availability, technology offerings, traceability of supply-chain, factory auditing, module testing and reliability, and company bankability.

Read Next

May 24, 2024
Waaree Energies has signed an agreement to supply 445MW of modules to Statkraft India for a project in Bikaner, Rajasthan.
May 24, 2024
Indian solar installations increased by over 400% in the first quarter of 2024 to the highest quarterly deployment levels in its history.
May 22, 2024
The global price of silver has continued to rise, with the average price increasing to RMB8,211/kilogram (US$32.03/ounce), a historical high.
May 21, 2024
The ISO has granted DMEGC Solar its ISO 14067 certification, to hold it to high standards of carbon footprint reporting.
May 17, 2024
The US Department of Commerce (DOC) has initiated investigations into solar cell imports from Southeast Asia under the antidumping and countervailing duty (AD/CVD) tariffs.
May 16, 2024
US independent power producer (IPP) Enfinity Global has secured US$135 million in financing for a 1.2GW solar and wind portfolio in India.

Subscribe to Newsletter

Upcoming Events

Upcoming Webinars
May 29, 2024
11am (EDT) / 5pm (CEST)
Solar Media Events
June 4, 2024
London, UK
Upcoming Webinars
June 11, 2024
3:00 PM (BST) / 4:00 PM (CEST)
Solar Media Events
July 2, 2024
Athens, Greece