Chinese solar modules manufacturer Hareon Solar is looking to expand its footprint in one of the fastest growing solar power markets in the world.
Hareon Solar has entered yet another investment deal with one of the largest independent power producers in the solar power sector in India. The Singapore-based investment unit of Hareon Solar has signed an agreement with Azure Power to develop 118 megawatt solar power project in the state of Telangana.
Hareon Solar will also supply solar panels for the project in another deal worth no more than $40 million. The investment arm of the modules manufacturer will pick up 45% stake in the project at $11.1 million.
The investment by Hareon Solar seems sound as the project was secured by Azure Power through a competitive auction organised by India’s largest power producer NTPC Limited. Power generated from the project will be sold to NTPC through a 25-year power purchase agreement, thus securing long-term revenue stream.
Last year, Hareon Solar and ReNew Power Ventures commissioned a 72 megawatt solar power project in Andhra Pradesh. ReNew Power Ventures had secured the project in auction at a tariff of ₹5.98/kWh (9.0¢/kWh). Hareon Solar had supplied solar panels and also acquired equity stake in the project.