Chinese solar module manufacturers have been at the receiving end of some pretty high anti-dumping duties from the US and the EU, and other countries like India are also considering to levy such duties on Chinese solar imports. As a result the Chinese companies are now looking to new solar markets, and what bigger market than Africa?
With this in mind, DCH Solargiga (a subsidiary of Solargiga) has signed an agreement to install 200 MW of solar power capacity in Ghana. The agreement was signed with the Savannah Accelerated Development Authority (SADA).
The company has now signed a contract with SADA to start the development of a 40 MW solar PV project near Tamale in Northern Ghana. The project will require an investment of about $117 million. SADA is expected to invest an equivalent of 10% of the total equity investment, and for the debt financing the company is expected to approach multinational development banks like the International Finance Corporation.
The capacity addition envisaged by DCH Solargiga would form a critical part of Ghana’s national policy to source 10% of its energy from renewable energy sources by 2020. Two years ago, the Ghanaian government had launched a feed-in tariff program which received an overwhelming response with prospective developers offering to set up 2,000 GW capacity.
“We are very pleased to extend our global footprint through tapping into the Ghana market and to develop overseas end markets for our solar products. Facing the imposition of US and EU tariffs and countervailing anti-dumping duties on Chinese PV products, we are devoted to expanding other high growth potential international markets,” said Solargiga chief executive Hsu You Yuan.
China has been making investments worth billions of dollars in the power sector infrastructure in countries across Africa. Chinese state-owned and private companies have signed several deals to set up power projects based on coal, hydro power and renewable energy technologies. Recently, the UN Environmental Program recognized China as the world’s largest player in the international renewable energy trade and investment domain.
Given the increasing anti-dumping duties and recent fiscal disciplinary actions from the Chinese government, these companies are wise to branch out into emerging markets where the feed-in tariffs are still very attractive and market competition is low.
Image credit: Jon Sullivan (Public domain)
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