US based solar energy developer SunEdison intends to set up a joint venture (JV) with India’s Adani Group for setting up an integrated solar photo-voltaic (PV) manufacturing plant in India involving investment of $4bn.
Announced during Vibrant Gujarat investment summit, the project is expected to produce low cost photovoltaic solar panels.
Both the parties have signed a memorandum of understanding (MoU) for the project development.
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Once operational, the facility will help the Indian government to reduce its dependence on coal-based thermal energy projects, and encourage power production from renewable sources such as solar at cheaper rates.
At present, solar power production in the country costs 50% more than power generated from conventional sources, including coal.
SunEdison CEO and president Ahmad Chatila was quoted by Reuters as saying: "This facility will create ultra-low cost solar panels that will enable us to produce electricity so cost-effectively it can compete head to head, unsubsidised and without incentives, with fossil fuels."
The deal has however not been finalized and is open to further analysis over the next few months, before the construction starts.
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By GlobalDataThis MoU is likely to be a boon for the present Modi Government in the country, as it intends to increase renewable energy production through the ‘Make in India’ campaign, reports Reuters.
In spite of having great potential with abundant sunshine, solar power development in India accounts for less than 1% of its energy mix.
The government seeks to invite investments for as much as $100bn from companies across Japan, Germany, China and the US in order to boost the nation’s solar power industry over the next seven years.
