Azure Power Global Limited
AZRE
recently announced the successful commissioning of its 300-megawatt (MW) Interstate Transmission System (ISTS)-connected solar power project. The solar project, which is located in Bhadla, Rajasthan, is part of Solar Energy Corporation of India’s (SECI) 2-Gigawatt (GW) solar project in ISTS.
Azure Power intends to provide power from the project to SECI at a tariff of 3.7 cents per kilowatt-hour. Moreover, with the current development, AZRE has now attained 2,683 MW of high-performing renewable energy assets in India, thus highlighting the company’s excellence in efficiently developing a solar project and successfully commissioning it.
Before this development, the company commissioned a 600 MW solar project in Rajasthan, one of the largest solar projects in India, in January 2022.
Long-Term Goals to Boost Growth
Azure Power is a leading independent sustainable energy solutions provider and power producer in India. The company intends to displace 230 million tons of global emissions by 2030.
In a bid to achieve this goal, the company has already attained a renewable asset base of more than 7.4 GW of solar power projects in India, out of which the company is operational with 2.6 GW of solar power capacity and nearly 4.8 GW of capacity remains under construction. The latest project commissioning should add to the company’s operational renewable assets.
Furthermore, Azure Power has approximately 1.5 GW of solar projects in the pipeline. Such a strong pipeline of projects is likely to boost the long-term growth prospects of AZRE. This, in turn, may bolster its top line over the long haul.
Growth Prospects
In November 2021, the government of India announced a five-fold strategy to achieve its net-zero emissions goal by 2070.
Such an ambitious goal in the renewable energy landscape exemplifies immense growth opportunities for companies like Azure Power to further expand their operations in the region. Solar companies that carved a position in the Indian solar market in a bid to capitalize on the favorable policy and abounding growth prospects are
Canadian Solar
CSIQ
,
JinkoSolar
JKS
and
Enphase Energy
ENPH
.
Canadian Solar installed approximately 1 GW of solar modules in India. It also has a 25 MW solar farm in Bikaner and a 35 MW project in Bagalkot.
The Zacks Consensus Estimate for Canadian Solar’s 2022 earnings indicates solid growth of 200.3% from the prior-year reported figure. Shares of CSIQ have rallied 5.8% in the past month.
JinkoSolar enjoys a strong foothold in the Indian utility market. It witnessed the increased adoption of its products in the region in the past year.
The Zacks Consensus Estimate for JinkoSolar’s 2022 earnings implies growth of 148.9% from the prior-year reported figure. The Zacks Consensus Estimate for JKS’ 2022 sales suggests an increase of 45.1% from the prior-year reported figure.
In December 2021, Enphase Energy announced the commissioning of a rooftop solar project of 103 kilowatts-peak in Bangalore. The project comprises 228 Enphase IQ 7A microinverters.
The Zacks Consensus Estimate for Enphase Energy’s 2022 earnings has been revised upward by 2.3% in the past 60 days. ENPH shares have appreciated 11% in the past month.
Price Performance
Shares of Azure Power have rallied 21.7% in the past month compared with the
industry
’s growth of 9.8%.
Image Source: Zacks Investment Research
Zacks Rank
Azure Power currently carries a Zacks Rank #3 (Hold). You can see
the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here
.
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