Shanghai Chaori Solar Energy Science & Technology, a Chinese PV module manufacturer, has signed a cooperation agreement with Brazil-based S4 Clean Energy Projectos Esolucoes Sustentaveis to construct up to 272MW of PV plants in Brazil.
No further details have been unveiled but it is understood that the companies will cooperate on the development of the project over the next three years until 31 December 2015.
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The companies will also establish a joint venture in the country which will have a registered capital of BRL3 million (US$1.44 million). Chaori Solar has invested BRL1.2 million into the venture which gives it a 40% share whilst S4 Clean Energy will contribute BRL1.8 million which will give it a 60% share.
The joint venture will be involved in the development, construction, operation and sale of solar power plants including the development of the 272MW projects. It will also establish a new production line in Brazil to process semi-finished modules. These locally produced products will enable the company to enjoy certain benefits from local taxations.
Chaori Solar will seek to increase the sale of its modules and, in turn, the company’s revenues through the gradual implementation of the PV projects in Brazil.
Chaori Solar is just one of a number of Chinese solar companies keen to develop PV plants outside of China following a serious oversupply of PV modules in the domestic market in 2011.
According to China’s National Development and Reform Commission as cited by China.org.cn, 15 overseas solar projects were approved in October. However, an industrial analyst stated that Chinese companies may face a number of challenges expanding overseas following probes into Chinese module manufacturers as a result of the ongoing solar trade war.