China-based solar photovoltaic modules manufacturer Hareon Solar has decided to enter the Indian solar power market by entering an agreement with ReNew Power.
Hareon Solar will invest and supply solar PV modules to a 72 MW project being developed by ReNew Power in the southern state of Andhra Pradesh. The project was secured by ReNew Power through competitive auction under the state’s solar power policy.
ReNew Power, an independent power producer, secured the project bid at Rs 5.98/kWh (~ US¢9.2/kWh). The power will be sold to a state power utility through a 25-year Power Purchase Agreement.
ReNew Power started operations several years ago, concentrating on the wind energy sector. The company currently operates 14 wind energy projects across 4 states in India, with a total installed capacity of 545 MW. The agreement with Hareon Solar is a major boost to ReNew Power, which is looking to significantly expand its footprint in the solar power market.
ReNew Power already operates a 57.5 MW solar photovoltaic power plant in the state of Madhya Pradesh, and has close to 250 MW worth of solar power capacity in the pipeline. Earlier this year, the company announced plans to add a further 6.5 GW of solar power capacity and 5 GW of wind energy capacity by 2022.
Last month, the company announced that it will raise $100 to $150 million to fund part of the 400 MW of solar power projects. Goldman Sachs has been the leading investor in ReNew Power since the company’s inception in 2011. Since then, ReNew Power has attracted $390 million in equity investments. Last year, the Asian Development Bank and the Global Environment Fund invested $50 million and $20 million.
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