Indian renewable energy independent power producer (IPP) Azure Power has become the launch customer for US headquartered First Solar's India manufacturing facility, to source Series 7 solar modules under a long-term supply agreement.
Under the transaction announced, Azure Power will purchase 600 MW DC of First Solar's Series 7 modules, to be delivered by the latter from Q4/2023 to 2025.
First Solar is building its new manufacturing facility in Tamil Nadu state of India with 3.3 GW capacity and is due to become operational in H2/2023 (see First Solar To Build 3.3 GW Thin Film Solar Fab In India).
For Azure Power, the long-term agreement is 'key to de-risking our supply side with the latest technology available in the market', according to the company's Acting CEO Rupesh Agarwal (see Azure Power's CEO Quits With Immediate Effect). For the same reason, Azure acquired 26% stake in and placed a 600 MW per annum module order for 4 years with Premier Energies of India in June 2022 (see Azure Power Invests In Solar PV Manufacturer).
"This deal demonstrates how experienced developers and independent power producers in India are increasingly taking a strategic view on procurement and securing long-term commitments that help tackle the risks of short-term pricing and supply volatility," said First Solar's Chief Commercial Officer (CCO) Georges Antoun. "When working with First Solar, they benefit from certainty of pricing and supply, and a technology that is advantaged in India's operating environments."
First Solar is also building a 3.3 GW DC fab in Ohio, its 3rd in the US and recently announced plans to build a 4th fab with 3.5 GW annual capacity in Southeast US while saying it may expand further. The new fab along with planned upgrades and expansion is aimed to take it cumulative annual manufacturing capacity to 10.5 GW DC by 2025 (see First Solar Reveals 4th US Solar Manufacturing Facility).