China’s Zhenfa Enters Indian Solar Market With 2 GW Pact
In the recent past numerous foreign developers and investors have gained a foothold in the flourishing Indian solar market attracted by its massive target of 100 GW capacity by 2022.
According to a recent announcement, Indian solar module manufacturer Rolta Power has signed a memorandum of understanding with Chinese firm Zhenfa New Energy Science and Technology to jointly develop solar power projects in India.
Under the terms of agreement, the companies will together install 2 GW of solar power projects by 2020, which is expected to generate revenue of around $2.03 billion. The deal also means that modules manufacturer Rolta India would enter the project development space, as the government plans to ease limitations on use of cheaper foreign modules. Domestic module manufacturers in India have lost significant market share to foreign companies, like First Solar, over the last few years.
Zhenfa Chairman Zhenfa Zha said, through this partnership, Zhenfa would bring its extensive engineering, procurement, and construction (EPC) skills and advanced technologies to construct utility-scale solar power projects in India, which will help alleviate the severe shortage of power supply in the country.
The Indian government plans to establish 100 GW of solar projects all over the country by 2022 through the Jawaharlal Nehru National Solar Mission (JNNSM). Such an ambitious target will indeed require huge investments from foreign companies. The current capacity addition target set by Rolta and Zhenfa will help them secure a 2% share of the 100 GW market.
Zhenfa New Energy Science and Technology is a part of the Jiangsu Zhenfa Holding Group which has developed 3 GW of solar projects in the Chinese market accounting for 10% of the country’s solar photovoltaic market.
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