Azure Power Global, a solar power producer in India, announced certain operational and financial updates – in the wake of coronavirus epidemic.
Azure Power expects revenues of between INR 12,900 million – 13,000 million which is in line with guidance of INR 12,770 – 13,350 million and 1,808 MWs were operational, which is also in line with the guidance for fiscal year 2020.
Azure Power said its plants remain fully operational during the recent lockdown in India as electricity generation is designated as an essential service in the country.
“We have been receiving payments towards electricity supplied from all our customers in normal course and there has only been minor curtailment of our plants, as of date,” Azure Power said in a media statement.
There has been reduction in electricity demand in India and DISCOMs are reporting they are seeing delays in payments from their customers. Azure Power received Force Majeure notices from various DISCOMS stating their inability to perform their obligations under the terms of the PPA due to COVID-19.
However, the Ministry of New and Renewable Energy (MNRE) has sent a directive to all state DISCOMS to reiterate that all renewable energy facilities in India have been granted must run status and this status of must run remains unchanged during the period of lockdown.
MNRE has clarified that any curtailment but for grid safety reasons would amount to deemed generation. Ministry of Power, in a letter to all State Governments, has clarified that the obligation to pay for the power within 45 days of the presentation of the bill (or the period of given in the PPA) remains the same.
Azure Power said financing for 1,290 MWs of under construction projects remain on schedule. The Assam 1 (90 MW) and Rajasthan 6 (SECI 600 MW) projects have debt funding in place.
Azure Power received a commitment from EDC, Societe Generale, and MUFG Bank for the debt funding of our Rajasthan 8 (SECI 300 MWs) project, and financing documentation and due diligence are in process. Azure Power is also in advanced discussions with banks for the debt funding of Rajasthan 9 (SECI 300 MWs).