Hanwha SolarOne intends to partner with a Chinese state-owned utility and investment firm, HuiTianRan Investment Holding Group, to develop 700MW of PV projects in the country.
The deal potentially takes Hanwha SolarOne’s PV project pipeline in China to 970MW, up from a pipeline of just over 200MW.
A memorandum of understanding (MOU) between Hanwha SolarOne and Shanghai HuiTianRan has been signed that could involve Hanwha SolarOne providing either modules or EPC services to Shanghai HuiTianRan.
Shanghai HuiTianRan was said to have already established a JV project company with a large state-owned electric power company. Shanghai HuiTianRan was also said to be identifying commercial and residential rooftop projects to be constructed.
Jay Seo, chief financial officer of Hanwha SolarOne and head of Hanwha SolarOne's downstream business, said: “The MOU with HTR provides further impetus to our accelerating downstream activities in China. The contemplated cooperation on HTR's planned 700 MW PV power plant projects with a well-established SOE provides the potential for either a large module supply agreement or selection as sole EPC provider.”
The company said that a definitive strategic cooperation agreement would be signed within 60 days following the signing of the MOU.
The Chinese government has already sanctioned a massive drive to increase PV installations in the country that was initially targeted at ground-mounted utility-scale projects but has switched emphasis though 2015 to distributed generation projects.