In 2015, Hareon Solar Technology Company Limited (Hareon), a Chinese solar technology company, entered into a joint venture with India’s ReNew Power Ventures Private Limited (ReNew) to develop a 72 MW solar power project in Andhra Pradesh. The joint venture aimed to leverage Hareon’s high-efficiency solar technology and ReNew ‘s extensive expertise in project execution within India’s burgeoning renewable energy sector. This project, eventually commissioned in 2016, was significant due to its 25-year Power Purchase Agreement (PPA) with the Andhra Pradesh Southern Power Distribution Company, contributing substantially to India’s clean energy goals by generating an estimated 115 million units of electricity annually.
Facilitating the Transaction
Majmudar & Partners played a key role in facilitating the transaction, ensuring regulatory compliance and managing complex joint venture and project requirements. The firm’s contributions included:
- Legal Structuring and Compliance: Ensuring adherence to Indian corporate laws and renewable energy regulations for a compliance joint venture setup.
- Regulatory Guidance: Assisting Hareon in navigating foreign direct investment norms and government policies in the renewable sector.
- Contractual Support: Drafting and finalizing the joint venture and project-specific agreements, including the PPA arrangements, to ensure operational stability and financial predictability.
Hareon and ReNew’s joint venture underscores the strategic importance of collaborations in renewable energy, particularly in emerging markets such as India. With Majmudar & Partners’ expert legal support, this joint venture was able to deliver a significant renewable energy project in India, marking a step forward in India’s sustainable energy goals and in the companies’ growth trajectories.
Majmudar & Partners provides comprehensive legal expertise to companies looking to expand through joint ventures or investments in India’s renewable energy market. Contact us today to learn how we can help facilitate regulatory compliance and smooth joint venture transactions tailored to your business needs.