In an exclusive interaction with B&E, Inderpreet Singh Wadhwa, CEO, Azure Power, talks about how solar power production is evolving in India and its prospects for the future
B&E: What was your outlook about the solar energy sector in India when you started Azure Power and how has it evolved since then?
Inderpreet Singh Wadhwa (ISW): When I founded Azure Power in 2008, most of the solar energy efforts in India were targeted towards rural electrification. However, there were very few large-scale solar projects then. This was the real inspiration for us. We built our first plant in Punjab at the tail end of the grid. There were about 32 villages around the plant which were getting electricity from the Bhakhra Dam through nearby substations. By the time power would reach the substation, there was a lot of transmission loss. So we constructed a 2-megawatt plant in Awan near Amritsar. This plant not just reduced all the grid disparities but it also created a sustained income for the community as we had leased the land instead of buying it. The National Solar Mission has also played a very important role in setting the tone for solar energy generation in the country since then. Various solar energy purchase obligations for distribution companies have benefited solar power generation companies.
B&E: How do you plan to scale up your operations and what targets you have in mind?
ISW: Our aspiration is to become the most affordable solar power producer in the country. We build and own power plants and sell the electricity on a long term contract. We have got a project each running in Punjab, Gujarat, Rajasthan and have also got two more projects coming up in Gujarat and another one in Rajasthan. The upcoming Gujarat project is going to be a 2.5-megawatt rooftop project in which roof owners will get lease rent. The key here is to aggregate many roofs so that one can take the advantage of economies of scale.
B&E: How do you find the regulatory environment for the generation of solar power in the country?
ISW: Solar power plants can be built anywhere in India barring a few northern and north-eastern areas where sunlight is not available throughout the year. Nowadays, almost every state has policies favorable for the sector. The central regulator has put regulations in place for every distributor to buy a certain proportion of their portfolio from solar power. Hence, all the states are following it. States like Gujarat have taken even larger initiatives to build one of Asia’s largest solar energy parks.
B&E: What was your outlook about the solar energy sector in India when you started Azure Power and how has it evolved since then?
Inderpreet Singh Wadhwa (ISW): When I founded Azure Power in 2008, most of the solar energy efforts in India were targeted towards rural electrification. However, there were very few large-scale solar projects then. This was the real inspiration for us. We built our first plant in Punjab at the tail end of the grid. There were about 32 villages around the plant which were getting electricity from the Bhakhra Dam through nearby substations. By the time power would reach the substation, there was a lot of transmission loss. So we constructed a 2-megawatt plant in Awan near Amritsar. This plant not just reduced all the grid disparities but it also created a sustained income for the community as we had leased the land instead of buying it. The National Solar Mission has also played a very important role in setting the tone for solar energy generation in the country since then. Various solar energy purchase obligations for distribution companies have benefited solar power generation companies.
B&E: How do you plan to scale up your operations and what targets you have in mind?
ISW: Our aspiration is to become the most affordable solar power producer in the country. We build and own power plants and sell the electricity on a long term contract. We have got a project each running in Punjab, Gujarat, Rajasthan and have also got two more projects coming up in Gujarat and another one in Rajasthan. The upcoming Gujarat project is going to be a 2.5-megawatt rooftop project in which roof owners will get lease rent. The key here is to aggregate many roofs so that one can take the advantage of economies of scale.
B&E: How do you find the regulatory environment for the generation of solar power in the country?
ISW: Solar power plants can be built anywhere in India barring a few northern and north-eastern areas where sunlight is not available throughout the year. Nowadays, almost every state has policies favorable for the sector. The central regulator has put regulations in place for every distributor to buy a certain proportion of their portfolio from solar power. Hence, all the states are following it. States like Gujarat have taken even larger initiatives to build one of Asia’s largest solar energy parks.
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