Azure Power India Pvt Ltd, one of the more successful solar photovoltaic players in the country, has roped in DEG of Germany as an investor in the company.
DEG has provided Rs 68 crore or $13.6 million (€10 million) risk capital in the form of compulsory convertible debenture to Azure Power. The investment will be used for Azure's projects in India. DEG - Deutsche Investitions und Entwicklungsgesellschaft mbH (the German investment and development company), on November 24 announced it in Germany.
Solar PV plants
Azure Power plans to commission a total of 100 MW of solar photovoltaic plants with a capital investment of Rs 1,500 crore by 2014, a top company official said. The company has already commissioned 12-MW of grid connected projects (2 MW in Punjab and 10 MW in Gujarat).
The 2 MW Punjab project is the first migrant project under the Jawaharlal Nehru National Solar Mission and meets the requirements of about 32 villages. For this, Azure had signed a memorandum of understanding with NTPC Vidyut Vyapar Nigam Limited, the trading arm of NTPC, nominated to procure power under phase 1 of the mission.
In addition to NTPC Vidyut Vyapar Nigam, Azure Power has agreements with the State Governments of Punjab, Gujarat, Rajasthan and Karnataka. The company has also bagged projects under the first batch of Phase 1 (5 MW ) of the National Solar Mission as well as in the recently concluded second batch (35 MW ).
Analysts say projects like Azure Power's demonstrate leadership in solar power generation in India by bringing down costs of solar power from Rs 17.91 a unit in 2009 to Rs 8.21 in 2011. At this rate the companies will be able to sell power to the masses without the need for Government subsidies very soon, they added.
Mr Inderpreet Wadhwa, CEO, Azure Power, had said that “almost a third of the population does not have access to electricity. Solar power can make a difference because it is most abundantly available during the time of peak power loads.”
For its various projects Azure has raised funds from Helion Advisors and Foundation Capital. Azure has also received funds from IFC, a member of the World Bank Group.