AEG Power Solutions Group has abandoned plans to build a 100MW PV portfolio in India alongside Gujarat-based project developer Electrotherm.
Under the terms of the contract, Electrotherm was scheduled to provide engineering, procurement and construction services for the projects, while AEG had agreed to provide the much of the equipment, including the inverters and monitoring equipment.
However, escalating costs, stemming from challenging conditions for developers and a difficulty in securing financial backing, saw the joint venture run into difficulty and prompted AEG’s decision, which comes just 12 months after signing the agreement.
Despite this, AEG is not entertaining the idea of entirely abandoning India’s embryonic solar industry. The Dutch firm, which has had an operational base in the country since 2006, presently boasts a 13% share of the industrial solar power market and in the last six months alone AEG has opened a 400MW manufacturing facility in Bangalore and received orders totalling 40MW.