Hareon Solar’s Singapore unit and Azure Power Global’s India unit are jointly investing in a 118 MW solar PV plant, with another contract being inked for Hareon to supply the facility with its solar modules for an amount no higher than $40 million.
The Singapore unit intends to invest roughly RMB 76.6 million and thereby acquire a 45% stake in the new project.
The joint venture has already signed a 25-year power purchase agreement with the Indian state-run power producer National Thermal Power Corporation (NTPC).
The Chinese manufacturer entered India’s burgeoning solar market in 2015 with an agreement to develop a 72 MW PV project with India’s ReNew Power. Back then, Hareon experienced a strong year with a net profit of 96.08 million yuan.
However, in 2016 the company swung to a net loss, which according to preliminary statistics amounted to 380 million yuan. As for the reason behind this severe downturn, Hareon remarked that it had seen a “significant decline” in the solar market in the second half of 2016.
Meanwhile, Azure Power’s experienced a prosperous 2016, as its bottom line benefited from the falling projects costs per megawatt, while its operational and pipeline capacity exceeded 1 GW, up from 267 MW in 2015.