Boston, MA 04/16/2014 (wallstreetpr) – The solar energy company Sunedison Inc (NYSE:SUNE) plans to go ahead with the construction of a separate solar project in India even when it announced that it would drop one of its projects in the country. The project that the company plans to build is a 30 megawatts solar farm that is among the projects it won in February.
However, the company announced dropping of the 20 megawatts project over what it termed high prices and shortage of equipment in the market. According the company’s head of South Asia and Sub-Sahara Africa operations, Pashupathy Gopalan, the decision to drop the 20 megawatt solar project was due to concerns that the local suppliers would not meet their cell demand for the projects. Also, the official said that local suppliers raised panel prices since Sunedison won an auction to develop solar facilities in the country.
Although dropping the project will help Sunedison Inc (NYSE:SUNE) to avoid unnecessary financial burden due to inflated prices and shortages, it could end up losing its bidding deposit that is reported to be about $0.33 million.
The move by Sunedison Inc (NYSE:SUNE) to retain one projects in India instead of dropping everything confirms the belief among solar energy companies that there exist a huge potential for solar energy business in the emerging markets of Sub-Sahara Africa and South Asia.
Project financing
Sunedison Inc (NYSE:SUNE) announced negotiating a credit facility with Deutsche Bank Securities Inc. The three-year financing deal is worth $300 million and will be put to project developments in Canada and the U.S. The money will be spent in acquisitions and development of solar projects. The company has already borrowed $150 million from the credit facility and the balance will be borrowed soon.
Losses exist
Sunedison Inc (NYSE:SUNE) is still a loss-making business. Sunedison had loss of $587 million in 2013, that was more than the $151 million loss suffered in 2012.
