Hareon Solar Technology Co., a Chinese solar-panel maker, will invest in India for the first time as the South Asian nation boosts its clean-energy capacity almost fivefold.
The manufacturer will team with ReNew Power Ventures Pvt., an independent power producer backed by Goldman Sachs Group Inc., to develop a 72-megawatt project in Andhra Pradesh, the companies said Monday in an e-mailed statement.
India is adding renewable-energy capacity to cut blackouts and curb reliance on coal-power plants that make it one of the world’s biggest polluters. State financial support has already lured foreign investors including China’s Trina Solar Ltd., U.S.-based SunEdison Inc. and Japan’s SoftBank Group Corp.
Hareon Solar will supply about 234,000 solar modules starting next month, according to the statement. The planned plant in the Kurnool district, slated to power more than 30,000 homes and save at least 115,000 tons of carbon dioxide a year, is due for completion by December.
“This is the first actual Chinese investment into India,” ReNew Power Chief Executive Officer Sumant Sinha said in an interview. The project will cost an estimated 4.7 billion rupees ($74 million), he said, without breaking down the investment from each partner.
Hareon Solar, based in Jiangyin in Jiangsu province, has an annual production capacity of about 1,600 megawatts of solar cells, the building blocks of photovoltaic modules, and about 1,200 megawatts of modules.
India Prime Minister Narendra Modi needs billions of dollars in investments to reach a targeted 175 gigawatts of clean-energy installations by 2022, up from about 37 gigawatts now. He plans to raise solar capacity to 100 gigawatts from 4.1 gigawatts over the period.
The Kurnool plant will be ready to start next March. It will add to ReNew Power’s 1,000 megawatts of clean-energy projects, of which 600 megawatts are commissioned.