Azure Power returns to productivity regardless of restricted project commissioning

Sep 1, 2021 01:54 PM ET
  • Azure Power is on track to increase its operating solar capability by at the very least a 3rd this fiscal year adhering to a first quarter that saw the independent power manufacturer (IPP) return to success.
Azure Power returns to productivity regardless of restricted project commissioning
Image: Azure Power

As of 30 June, the end of its Q1, the India-based business's operational PV portfolio stood at 2,052 MW, up 23% on the same duration last year. This is expected to rise to 2,750-- 2,955 MW by the end of March 2022.

After publishing a net loss in the previous three quarters, Azure taped Q1 internet profit of INR 697 million (US$ 9.6 million) and also boosted its earnings 13% year-on-year to INR 4,440 million (US$ 59.7 million) thanks to income created from solar projects commissioned since Q2 2020/21.

During the first quarter, Azure marketed its 153MW roof solar portfolio to Radiance Renewables, a subsidiary of Indian environment fund the Green Development Power Fund, as part of initiatives to buy projects supplying higher returns.

Effects from the coronavirus pandemic meant Azure commissioned simply 62MWac/ 64MWdc in Q1, a boost on the exact same quarter last year when it commissioned 1MWac/ 3MWdc. "We did not commission any kind of significant capabilities during both durations largely as a result of COVID-19 interruptions," the firm stated.

There was no change in the IPP's operating, contracted and awarded solar capacity, which stood at 6,955 MW at the end of Q1. That number consists of 4GW for which the business has actually gotten letters of award however power purchase contracts have yet to be signed.

At the end of the quarter, Azure claimed its project cost per MWac of operating solar stood at INR 39.3 million and would certainly have been around INR 2.1 million reduced without the impact of India's guarding task, which was imposed on imports of solar equipment as well as ended last month.

For its Q2, Azure expects to post incomes of INR 3,600 million-- 3,800 million, a rise on the INR 3,504 million it recorded in the exact same quarter last year.

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