Azure Power is one of India’s leading solar energy developers and it designs, finances, owns, and operates solar power plants in India.
The company is one of the 37 companies the Indian government selected in December last year to supply 5 MW of solar power to the national grid.
The company has in the past secured financing from the Overseas Private Investment Corp., a U.S. government body, and the International Finance Corp., a member of the World Bank Group. It has business agreements with China’s solar energy major Suntech Power Holdings Co. and SunEdison LLC, a unit of MEMC Electronic Materials Inc.
Azure Power is currently building 22 megawatts of power projects in the states of Punjab, Rajasthan and Gujarat.
The company has set itself an ambitious target of having an installed capacity of 100MW by 2013 and has been actively working with various stakeholders in this regard.
According to reports, Azure Power, today, announced the commissioning of Phase I of its 10 MW solar photovoltaic plant in Gujarat. The plant at Khadoda village, Sabarkantha district in North Gujarat is India’s largest solar power project. Azure has entered into a 25 year long agreement with the apex state utility Gujarat Urja Vikas Nigam Limited.
Azure Power chairman HS Wadhwa said, “Azure Power has demonstrated successfully on ground that solar power prices are following a downward trend and in next 5 years should reach retail parity. With Government of Gujarat’s dynamic participation in this sector, economies of scale will accelerate solar generation grid parity, creation of millions of jobs and clean energy for Indian households for years to come.”
Azure Power has a project under every Solar Policy in the country. In addition to Gujarat, Azure Power has inked agreements with state governments of Punjab and Rajasthan. Ongoing talks with other state governments will take this total generating capacity to a combined production of 100 MW solar power by 2014 with cumulative investment of Rs 1500 Crs.
The Khadoda Plant has been set up at an investment of Rs 170 crore. Gujarat chief minister Narendra Modi will formally inaugurate Azure Power’s newly created facility on Friday.
Earlier in October 2010, Azure Power announced an investment in the Gujarat for development of the Khadoda Solar PV power plant. The investment of $40 million USD is led by Overseas Private Investment Corporation (OPIC), an agency of the United States Government that helps US businesses invest overseas and promotes economic development in new and emerging markets.
Other investors in the project include IFC, a member of World Bank group, Helion Advisors, a venture capital firm based in Gurgaon, India and Foundation Capital, a venture capital firm based in Menlo Park, California .
The company had earlier set a target of 100MW by 2013 which it has now shifted to 2014 according to this report, but Panchabuta does believe that the target is still rather ambitious but not impossible to achieve if the developers chooses to build projects not just under preferred tariff PPA but under different structured mechanisms that some of the leading independent solar power developers that Panchabuta spoke to are currently evaluating.