Bangalore: First Solar Inc, the world’s largest solar company by market value, said it will supply 100 megawatts (MW) of solar modules to India’s Reliance Power in what it called the biggest supply deal in the fast-growing market.
Because of India’s abundant solar resource and significant energy demand, the country’s market is expected to be one of the fastest growing in the world, although most solar product makers have had difficulties getting significant deals there.
First Solar will deliver 40 MW of its thin film modules to Reliance by year-end for its project in Jaisalmer in the western Indian state of Rajasthan. The project will supply electricity to the populous city of Mumbai.
The remaining 60 MW will likely be delivered in 2012, under the agreement with billionaire Anil Ambani’s Reliance Power.
Last month, the US Export-Import Bank approved an $84.3 million direct loan to Reliance Power’s Dahanu Solar Power Pvt unit to purchase First Solar panels for the first 40 MW of the project.
First Solar had said in its latest earnings conference call that India will account for about 10% of its 2011 sales in megawatts and offset weakness in the top markets in Europe.