Azure Power strikes 'first-of-its-kind critical collaboration' with investment in solar manufacturer

• Indian independent power manufacturer (IPP) Azure Power has made a US$ 12.9 million investment in solar maker Premier Energies while likewise locking in residential PV module supply from the business.

Azure has agreed to acquire as much as 600MW of solar modules in each of the following 4 years from Premier, which specifies its module manufacturing capacity to be 1.25 GW.

Azure will certainly likewise make a US$ 12.9 million financial investment in the firm-- split in between a membership for equity shares as well as convertible debentures-- which will certainly help Premier establish a 1GW cell and also module manufacturing project in India.

Chiranjeev Saluja, taking care of supervisor at Premier Energies, explained the deal as a "first-of-its-kind critical partnership" between an IPP and solar producer in India.

"Having a long-lasting supply presence is a crucial factor in the direction of de-risking our service. Premier is running among the most innovative modern solar battery and module lines in the nation, as well as we are pleased to partner with Premier," Alan Rosling, chairman at Azure Power, stated.

Chasing after a 450GW set up renewables capacity target by 2030, India's solar market is dealing with headwinds in the shape of soaring demand for India-made PV modules after the nation's government carried out tariffs of 40% on imported PV modules as well as 25% on cells.

That basic customs duty (BCD), combined with a production connected incentive to support producers, have been carried out to promote procurement of locally manufactured goods under Prime Minister Modi's 'Made in India' initiative. The policy, however, has not come without its costs.

Spiralling module costs has actually taken the chance of endangering the economics of 25GW of solar projects in India-- 5GW of which go to high risk-- and stakeholders have actually warned of enhancing tariffs for solar projects if the situation does not ease.

But last week India's energy priest RK Singh openly stood up to contact us to fine-tune the BCD, specifying that he did not "desire any type of Chinese imports".